VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 18, 2017) - A British Columbia Securities Commission (BCSC) panel has ordered monetary sanctions and permanent bans against Brendan James Schouw and his company Hornby Residences Ltd. for fraud.
In January 2017, a BCSC panel found that Schouw, a Vancouver resident, convinced one investor to invest $1 million in Hornby for a Vancouver real estate project. After depositing the investor's money into Hornby's bank account, Schouw redirected certain of the funds to his own account. Schouw spent approximately $75,000 of the investor's money on his personal mortgage payments and on his separate property management business, despite representing to the investor that all of his investment would be used for the development of a Vancouver real estate project.
In its decision, the panel stated "Schouw knowingly diverted the funds for his own purposes and did so with the knowledge that by so doing, he was putting the investor's funds at risk."
For his misconduct, Schouw has been ordered to pay an administrative penalty of $125,000. He has also been ordered to pay a disgorgement order of $74,612. Schouw and Hornby are jointly and severally liable for the disgorgement amount.
Both Schouw and Hornby have been ordered to cease trading in, and are permanently prohibited from purchasing, any securities or exchange contracts. They are both also banned from becoming or acting as a registrant or promoter, acting in a management or consultative capacity in connection with activities in the securities market, and engaging in investor relations activities.
Schouw has been ordered to resign any position that he holds as a director or officer of any issuer and has been permanently prohibited from becoming or acting as a director or officer of any issuer or registrant. The panel also ordered that securities of Hornby be permanently cease traded.
You may view the decision on our website, www.bcsc.bc.ca, by typing Brendan James Schouw, Hornby Residences Ltd. or 2017 BCSECCOM 168 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.