BCSC imposes $1.7 million fine and bans three from trading
The British Columbia Securities Commission has imposed a total of $1.7 million of financial sanctions on three B.C. men and two mortgage investment companies after finding they committed fraud.
Patrick K. Prinster and David Scott Wright were each ordered to pay $250,000. Donald Bruce Edward Wilson was ordered to pay $150,000 for diverting investors’ funds from mortgages secured by real estate, which was the purpose described in marketing materials.
The panel also permanently banned the three from trading in or purchasing securities or exchange contracts, becoming a registrant or promoter, acting in a consultative capacity in the securities market and engaging in investor relations.
Three were warned many times
The panel said the three diverted the funds and carried out their misconduct “despite warnings and concerns expressed to them from multiple sources.”
The panel imposed financial sanctions of more than $560,000 on DominionGrand II Mortgage Investment Corporation, and just over $500,000 on DominionGrand Investment Fund Inc.
Almost all of the $1.1 million raised from investors was lost, though the panel did not find evidence that Prinster, Wright or Wilson had been personally enriched by the diversion of investments.