Developer committed fraud says BCSC

The British Columbia Securities Commission has found that Brendan James Schouw and Hornby Residences Ltd. perpetrated fraud on an investor.

Schouw convinced an investor to put $1 million into a Vancouver real estate project with the promise of 18 per cent interest annually. However much of the investor’s money was redirected from the Hornby Residences bank account to Schouw’s personal account.

The BCSC panel found that the developer used around $75,000 on his own personal mortgage payments and for a separate property management business, despite the investor being assured that the $1 million investment was solely for the real estate project.

The panel also found that as Hornby's sole director and officer, Schouw permitted or acquiesced to Hornby's misconduct and is thus liable for Hornby's fraud.

A further charge relating to $440,000 of the investors’ funds were dismissed by the panel.

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