The British Columbia Securities Commission has imposed a total of $1.7 million of financial sanctions on three B.C. men and two mortgage investment companies after finding that they committed fraud.
Patrick K. Prinster and David Scott Wright were each ordered to pay $250,000 and Donald Bruce Edward Wilson was ordered to pay $150,000 for diverting investors’ funds from mortgages secured by real estate, which was the purpose described in marketing materials.
The panel also permanently banned Prinster, Wright and Wilson from the following activities:
- Trading in or purchasing securities or exchange contracts
- Using exemptions set out in the Securities Act
- Becoming or acting as a registrant or promoter
- Acting in a management or consultative capacity in the securities market
- Engaging in investor relations
The panel noted that Prinster, Wright and Wilson diverted the funds and carried out their misconduct “despite warnings and concerns expressed to them from multiple sources.”
The panel imposed financial sanctions of $561,479 on DominionGrand II Mortgage Investment Corporation, and $500,961 on DominionGrand Investment Fund Inc.
Almost all of the $1.1 million raised from investors was lost, though the panel did not find evidence that Prinster, Wright or Wilson had been personally enriched by the diversion of investments.