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Woman defrauds Richmond, Vancouver investors of $1.7M

A panel found Meiyun Zhang's actions were 'calculated and even predatory.'
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The BC Securities Commission found Meiyun Zhang told investors their money would generate monthly returns of six to 10 per cent without risk.

A woman was found by the BC Securities Commission (BCSC) to have defrauded investors in Richmond and Vancouver of about $1.7 million under the guise of helping Chinese students and tourists.

Meiyun Zhang raised about $3.2 million from three investors in Richmond and Vancouver between 2014 and 2016, telling them their money would generate monthly returns of six to 10 per cent without risk.

The BCSC panel described how Zhang “varied her ‘pitch’ to the investors in order to find a message which would work for each of them,” that they would earn returns by exchanging foreign currency for Chinese students and tourists visiting Canada, or by helping students immigrate to Canada to study, or by providing loans to Chinese students to obtain Canadian visas.

Instead, the panel found the funds were actually used for Zhang’s personal purposes, including making retail purchases, gambling in casinos and paying utility bills.

Although the three investors got some of their money back, they lost a combined $1.7 million.

One investor lost almost $1 million, another lost about $130,000 and the third, about $580,000.

One investor told the panel she had lost several properties securing loans for the investments with Zhang.

The BCSC panel noted in its decision that the investor funds weren't secure. Furthermore, the panel stated "the returns the investors received did not come from the underlying business, but came from their own funds or those of other investors," adding the "investment scheme had elements of a Ponzi scheme as well as an affinity fraud."

The panel stated it's convinced “Zhang’s actions were calculated and even predatory.” This was demonstrated by the persistence Zhang displayed in convincing the initially reluctant victims to give her their initial investments and then to continue providing funds.

The panel concluded Zhang, who had a B.C. driver’s licence and used Calgary mailing addresses throughout the scheme, had “actual knowledge” that her actions were putting the invested funds at risk.

Since April 2023, Zhang has been temporarily banned from participating in the investment market because of the seriousness of the allegations against her and the delays in holding a hearing.

The hearing was conducted in writing after several unsuccessful efforts to conduct an in-person hearing, which Zhang didn't participate in.

The panel will next consider what sanctions to impose, which could include monetary sanctions and bans from market participation.

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