B.C.'s securities regulator is alleging that a Vancouver woman and her company illegally raised more than $1 million from investors, operated a fraudulent real estate flipping scheme and obstructed an investigation into their activities.
Cherie Evangeline White is scheduled for a hearing before the B.C. Securities Commission (BCSC) on July 14 to face allegations of fraud, illegal distribution of securities and obstruction of justice, according to a public notice.
White was the sole director of KingdomInvestments2015 Inc., formerly known as KingdomRealty Inc. and Kingdom Investments Inc., and promised high returns from "fixing and flipping" and the "buying and holding" of real estate, according to the BCSC.
Between 2016 and 2019, White and her company are accused of raising $1.25 million from 24 investors by distributing securities without a prospectus or a prospectus exemption.
She and her company allegedly told nine investors in 2017 and 2018 that their funds would be used for high-return real estate investments. Instead, the BCSC alleges $176,000 of the money was used to repay other investors and a personal loan.
White allegedly raised another $100,000 from two investors in August 2018 without informing them the company was defaulting on its payments.
The BCSC alleges that when White was compelled to participate in an interview, she refused to provide the documents and information requested by staff, telling them it was "a waste of my time."
The allegations have not been proven.
Lawsuits show thousands in unpaid loans
White and her company have been the subject of several lawsuits in recent years.
In one, a Vancouver student says she agreed to pay KingdomRealty a loan of $100,000 in 2017 with the understanding it would be repaid with 15 per cent interest within six months. More than a year later, White and her business had failed to repay any of the loan, and a default judgment was issued against them in April 2019.
Another claim, filed in March 2020, says a Vancouver man lent White $50,000 to buy a property on East Hastings Street, but she did not repay any of that money despite making "numerous false claims that she will be repaying the owed amount." The lender filed his suit in small claims court, thereby abandoning his right to any damages over $35,000.
White agreed to pay that amount through Kingdom Investments in August 2020, court documents show. As of November 2021, she had only paid $300, despite numerous appearances in court on arrest warrants.