Permanently banned B.C. man could face $3-million fine, jail

Won Sang Shen Cho, 46, of Vancouver, B.C., was arrested June 13, 2017, following an investigation by the British Columbia Securities Commission’s criminal investigations branch.

Cho has also used the names Craig Cho, Kevin Kim and Jae Hoon Kim.

The warrant for Cho’s arrest was issued in connection with multiple charges against Cho under the Securities Act. Cho was arrested at his residence in Vancouver with assistance from Vancouver Police.

It is alleged that from July 2015 to November 2016, Cho solicited over $270,000 from five different investors. Cho published advertisements throughout Canada and the U.S. offering to sell shares in online gambling and sports betting businesses. In doing so, it is alleged Cho breached a Commission order, made misrepresentations, traded without registration and failed to file prospectuses.

Cho is currently charged with 13 counts under the Securities Act. If proven, the charges in this matter are punishable by a fine of up to $3 million, up to three years in prison, or both.

On June 14, 2017, Cho was released on cash bail. A trial date in this matter has yet to be set.

The order that Cho is alleged to have breached was issued by the BCSC under the Securities Act on October 22, 2013, for his involvement with Chosen Media and Groops Media, both of which were B.C.-based businesses. Cho illegally distributed securities, made misrepresentations and perpetrated a fraud.

Because of these findings, Cho is permanently banned from trading and purchasing securities and from engaging in investor relations activities. He is also permanently prohibited from becoming or acting as a director or officer of any issuer or registrant and from acting in a management or consultative capacity in connection with the securities market.

Cho was also ordered to pay $20,569 owing to investors and an administrative penalty of $200,000.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.