Vancouver – A British Columbia Securities Commission (BCSC) panel has found that three B.C. men and two mortgage investment companies committed fraud against investors by dishonestly spending their investment funds.
Donald Bruce Edward Wilson, David Scott Wright, Patrick K. Prinster and DominionGrand II Mortgage Investment Corporation and DominionGrand Investment Fund Inc. provided marketing materials that would have led a reasonable person to believe their funds would primarily be invested in mortgages secured by real estate. But none of the investors’ funds were actually used for that purpose. Instead all of the investors’ funds were paid to related companies for start-up costs and for other purposes.
The panel further stated that any business person, especially three men with experience in the real estate industry like the respondents, would know that diverting investors’ funds from their intended investment in secured mortgages into unsecured investments in related parties would result in both the risk of loss and actual loss to investors.
Wilson, Wright, Prinster and DominionGrand II Mortgage Investment Corporation were found to have committed fraud with respect to 19 investments for $610,134; Wright, Prinster and DominionGrand Investment Fund Inc. were found to have committed fraud with respect to 21 investors for $506,693.
The panel will impose sanctions after considering submissions from BCSC staff and the respondents.
You may view the findings decision on our website, www.bcsc.bc.ca, by typing Donald Bruce Edward Wilson, David Scott Wright, Patrick K. Prinster, DominionGrand II Mortgage Investment Corporation or DominionGrand Investment Fund Inc. in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital