BC’s capital markets regulator has brought allegations of fraud, illegal distribution of securities and obstruction of justice against a Vancouver woman and the real estate company she controlled.
The allegations against Cherie Evangeline White and her company KingdomInvestments2015 Inc. have not been proven. The British Columbia Securities Commission will schedule a hearing into the case next month.
According to the BCSC, White was the sole director and officer of the company, formerly known as KingdomRealty Inc. and Kingdom Investments Inc.
The company billed itself as “a real estate investment firm that has generated high returns for investors through the ‘fixing and flipping’ and ‘buying and holding’ of properties,” the BCSC said. in a press release.
The commission alleges that in 2017 and 2018, White and his company used about $176,000 from nine investors to pay off other investors and pay off a personal loan. This, despite allegedly telling investors that their money would be used to invest in real estate.
The BCSC also alleges White and his company raised an additional $100,000 from two investors in August 2018 without telling them the company was missing payments to other investors.
Both actions constituted fraud, according to the BCSC.
The illegal distribution allegation stems from approximately $1.25 million that White and his company raised from 24 investors between 2016 and 2019. These investors were sold securities without a prospectus, the commission alleges, adding that White and Kingdom had not obtained a prospectus exemption.
The obstruction of justice allegation stems from White’s refusal to provide documents to BCSC staff during a compelled interview in December 2020, the commission said, alleging White told investigators that providing such documents would be “a waste of (his) time”.
The BCSC has asked White to come to its offices on July 14 if she wishes to be heard before the commission schedules a hearing.