A British Columbia real estate company CEO has been ordered to pay a hefty fine for what authorities are calling a fraudulent house-flipping scheme.
Cherie Evangeline White, the owner and CEO of Kingdom Investments 2015 Inc., allegedly promised investors high returns, between 10% and 30%, in exchange for funding residential property flips. However, according to a recent press release by the British Columbia Securities Commission (BCSC), White and her company committed several serious wrongdoings.
The BCSC found that Kingdom Investments illegally distributed over $1.18 million in securities to 24 investors without a prospectus, a legal document required for investment offerings in Canada. This lack of transparency is a major red flag for potential investors.
The situation turned even worse for investors, with the BCSC alleging that White lost them a total of $776,000. The report also stated that White pressured investors into handing over their money, even accompanying one to their bank despite warnings from bank staff to proceed with caution.
The BCSC panel did not mince words, calling the damage done to investors “severe.” They further noted White’s apparent lack of remorse and her company’s refusal to cooperate with the investigation.
White has been ordered to pay a $600,000 fine, though it’s unclear if investors will see any recovered funds. This case serves as a stark reminder for British Columbians to be wary of unsolicited investment opportunities, especially those promising high returns in a short period. Investors should always conduct thorough research and ensure any offered securities have the proper prospectus before handing over their money.
