A Burnaby man with a history of securities misconduct has once again been sanctioned by the B.C. Securities Commission in relation to a former Surrey investment management firm that failed in its duties to investors.
In December 2020, the province’s capital markets watchdog put out a news release alleging Surrey-based Chartwell Asset Management Inc. had violated the Securities Act when it “failed to exercise sufficient care, diligence and skill in calculating the value of one of its funds (Health Capital Receivables Funding Special Purpose Corporation I) and did not ensure that the fund was a suitable investment for clients.”
In a settlement agreement with the BCSC signed last week, Chartwell admitted it hadn’t had sufficient information about Health Capital to support its calculation of the value of the fund, and it hadn’t re-evaluated the fund’s valuation when multiple risk indicators came to light – like when Health Capital stopped making timely interest payments and stopped providing reporting documents.
In the settlement agreement, three men connected to the investment management firm admitted they authorized, permitted or acquiesced in Chartwell’s contraventions and therefore violated the act as well.
Burnaby’s Wah Bo Chew, a Chartwell director and advising representative, must now pay $70,000 and is banned for 10 years from becoming or acting as a director or officer of any reporting issuer or registrant.
Surrey’s Gregory Cameron, Chartwell’s former president, chief executive officer and director, must pay $100,000 and is banned for 15 years from becoming or acting as a director or officer of any reporting issuer or registrant and from becoming or acting as a registrant or promoter.
Coquitlam’s Matthew Cameron, former vice president, advising representative and chief compliance officer, must pay $40,000 and is banned for four years from becoming or acting as a chief compliance officer.
Unlike the other two men, Chew has been sanctioned by the securities commission before.
He was ordered to pay $2,000 as part of a settlement agreement in 1997.
Chew had been registered as a salesperson with Ascot Financial Services Ltd. between 1994 and 1996, according to the agreement.
During that time, he incorporated Chartwell, and sent out advertisements using Chartwell stationary that led the public to believe the new firm was registered under the Securities Act.
After Chartwell was registered in 1996, Chew then used Chartwell stationary that indicated the mutual funds licence was sponsored by Ascot, also contrary to the act.
Under the settlement agreement, he was fined and ordered to destroy the stationary.
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