Photo: Sombilon Photography/Flickr
A British Columbia Securities Commission panel has found that Brendan James Schouw (who commonly goes by James) and Hornby Residences Ltd. perpetrated fraud on an investor.
According to the panel, in 2009 Shaw took $1 million from an investor for a Hornby real estate project, promising 18 per cent interest to accrue annually.
After depositing the investor’s money into Hornby’s bank account, Schouw used some of it for his own purposes. He spent approximately $75,000 of the investor’s money on mortgage payments and other property management business, despite representing to the investor that all of his investment would be used for the Hornby project.
“Seventy-five thousand dollars of [the investor’s] investment was diverted from its investment purpose. Those funds were both put at risk and ultimately lost,” the panel said in its decision.
The panel also found that, as Hornby’s sole director and officer, Schouw permitted or acquiesced to Hornby’s misconduct and is liable for the fraud.
The panel directed the parties to make submissions on sanctions according to the schedule set out in the findings.
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