Investigators with the B.C. Securities Commission (BCSC) are alleging a Vancouver woman used a B.C. company to fraudulently raise money for purported real estate investments.
The commission has issued a hearing notice to Cherie Evangeline White after she and her company KingdomInvesments2015 Inc. allegedly committed fraud, illegally distributed securities, and obstructed justice.
Between 2016 and 2019, White and Kingdom raised approximately $1.25 million from 24 investors by distributing securities of the company. The company promised significant returns from the “fixing and flipping” and the “buying and holding” of B.C. real estate, stated the commission in a June 8 news release.
However, White and the company subsequently used money from nine investors to repay other investors and a personal loan in 2017 and 2018. In August 2018, White and Kingdom raised an additional $100,000 from two investors without telling them that the company was defaulting on payments to other investors, the commission alleged specifically.
Despite offering securities, White failed to provide the investors a prospectus — a document outlining the nature of the investment. Nor did the investments qualify for a prospectus exemption, said the commission.
“The BCSC alleges that White, as the sole director and officer of Kingdom2015, authorized, permitted or acquiesced in the company’s fraud and illegal distributions," noted the commission.
In 2020, investigators approached White and she allegedly did not cooperate.
“White refused to provide documents and information demanded by BCSC staff during a compelled interview, saying it was ‘a waste of my time,’ which is an obstruction of justice under B.C.’s Securities Act,” stated the commission.
The commission’s allegations have not been proven. White is scheduled to appear before a panel on July 14.