Fraudster spent $3 million of investors' money gambling and fighting removal from Canada, says BCSC
The B.C. Securities Commission says an alleged fraudster bilked three people out of more than $3 million through false investment schemes and instead spent the money gambling and paying an immigration lawyer to fight her removal order, among other things.
According to the BCSC, Meiyun Zhang convinced two Vancouver residents and one Richmond resident to lend her money between 2014 and 2016, promising a no-risk return on investment of between six and 10 percent.
Two of the investors were told their money would fund a business that helped Chinese students get a Canadian visa.
The third investor was told their money would be used to exchange foreign currency into Canadian dollars to be used by Chinese students and tourists visiting Canada.
The BCSC alleges Zhang instead spent the money on:
Paying returns to investors in Canada and China.
Repaying a personal loan to a Calgary real estate agent.
Retail purchases.
Utility bills.
Paying an immigration lawyer to dispute her removal order by Canada Immigration.
Cash withdrawals.
Gambling at casinos.
Allegations against Zhang under the B.C. Securities Act have not been proven. The commission will schedule a hearing date in December 2020.
Zhang is also the subject of two civil claims filed in B.C. Supreme Court. It is not clear if the plaintiffs are the same investors cited by the BCSC.
One claim says Vancouver businesswoman Wendy Hau Wan Parker lost $60,000 to Zhang, who lives in Richmond according to court documents.
Parker's claim says she signed seven credit agreements with Zhang between February and December 2017, before Zhang defaulted on a $60,000 payment due to Parker on Jan 31, 2018.
A second claim says retired Richmond resident Nan Ping Zhou advanced personal funds and money from third parties to Zhang between July 2016 and December 2017, after Zhang represented the money would be invested in a "business venture that provided services in the foreign currency market."
Zhou's claim goes on to say that some of the money invested was paid back, but in January 2018 Zhang stopped making payments, "leaving a substantial portion of the advances outstanding."
"The business venture did not exist and at all material times the defendant knew the business venture did not exist," says the claim.
Zhang has not filed a response to the two claims. None of the allegations has been tested in court.
