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Two British Columbia company directors fined, banned for illegal securities distribution

Jan 31 2013 Compliance Complete news team

A British Columbia Securities Commission (BCSC) disciplinary panel has fined and permanently banned two directors of a B.C. company for selling securities without being registered. Between July 2006 and January 2009, Ingram Jeffrey Eshun, Maisie Smith, and JV Raleigh Superior Holdings Inc. traded and distributed securities in contravention of British Columbia's registration and prospectus requirements, the BCSC said in its disciplinary ruling (PDF). The panel found that the Eshun, Smith and JV Raleigh illegally raised $5.7 million by entering into loan agreements with 81 investors. Under the loan agreements, JV Raleigh was to borrow money from investors to purchase "consumer secured notes receivable," which JV Raleigh described to lenders as a form of factoring with typically high yields. "There is no evidence that the company used any of the funds for this purpose," the panel said. Additionally, the sanctions decision noted that the respondents produced no records to show how they

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