A woman accused of duping Richmond and Vancouver residents out of $3 million has been banned from participating in the investment market for a year.
Meiyun Zhang was accused of getting funds from three investors under the guise of exchanging currency for Chinese students and tourists and getting student visas for Chinese students.
Instead, according to the British Columbia Securities Commission (BCSC) in 2020, Zhang spent the money on paying returns to investors in Canada and China, paying personal expenses, making cash withdrawals and gambling at casinos.
She was also accused of spending the money on an immigration lawyer to dispute her removal order from Canada Immigration.
Zhang was scheduled for a hearing before the BCSC in September 2021, but that got pushed back three times before being adjourned indefinitely due to her medical condition.
BCSC issued a temporary ban on Zhang in April that was set to expire on May 10, but decided it would be in the public interest to extend the ban by one year until May 10, 2024.
In a decision issued on June 12, the BCSC panel said initial examination shows evidence supporting the allegations.
The main considerations for extending the ban were the inability to hold a hearing for Zhang and the fact she is no longer cooperating.
Zhang’s alleged breaches are also “among the most serious possible” under the Securities Act, and there is “some risk of future breaches,” according to the panel.
“Significant time has passed and with Zhang ceasing to cooperate in the hearing process. It is both reasonable and necessary that this panel now take this demonstrative interim step in the public interest,” reads the decision.
Zhang is banned from now until May 10, 2024 from:
- Trading in or purchasing securities or derivatives, except in her own account, through a registrant
- Holding any position as a director or officer of any issuer, except issuers that are owned beneficially by her or by members of her immediate family
- Becoming or acting as a registrant or promoter
- Advising or otherwise acting in a management or consultative capacity in the securities market
- Engaging in promotional activities by or on behalf of an issuer, security holder or another person that is reasonably expected to benefit from the activity, and
- Engaging in promotional activities on her own behalf in respect of circumstances that would be reasonably expected to benefit her.
She is also not allowed to use exemptions in the Securities Act, regulations or any decisions defined by the act.
