A woman who defrauded B.C. investors under the pretext of supporting Chinese students and tourists has been ordered to pay nearly $3.3 million in sanctions by the B.C. Securities Commission (BCSC).
The commission said in a statement that a panel ordered Meiyun Zhang to pay an administrative penalty of $2.5 million and more than $790,000 in cash she is alleged to have obtained through fraud.
The funds collected will be used to compensate the victims.
In addition to the monetary penalties, the BCSC panel has permanently banned Zhang from participating in any investment market, with a limited exception for trading securities or derivatives on her own account.
Between 2014 and 2016, the provincial agency says, Zhang targeted three B.C. investors, who were led to believe that their money would generate monthly returns of up to 10 per cent without risk.
She reportedly convinced investors their money would be used for several purposes, including exchanging it for Chinese currency, assisting Chinese students with visa applications or renewals, and helping them demonstrate to immigration officials that they had sufficient funds to study in Canada.
Instead, the panel found that Zhang used the funds for personal reasons, such as retail shopping, gambling and paying off her own debts, including a personal loan to a Calgary Realtor.
The panel ruled that “Zhang showed a complete disregard for compliance with applicable laws and for markets that are honest and fair.”
BCSC says the investors got some of their money back but lost a combined total of $1.7 million.
The panel noted that the victims’ financial losses have led to deferred retirements, severe health problems, the need to sell properties, and depression, anxiety or suicidal thoughts.
Zhang’s liability and sanctions hearings were conducted in writing due to her health issues, and she did not participate in either one, the commission’s statement says.
CBC has contacted Zhang for comment.