The founder of a well-known B.C. investment firm and his two companies are connected to suspected fraud.<\/p>\n
The B.C. Securities Commission (BCSC) has evidence that Peter Cishecki, Everything Financial Group (EFG), and Everything Financial Consultants Inc. (EFCI) might have committed fraud under B.C.\u2019s Securities Act.<\/p>\n
In response, the BCSC has extended a temporary order to Cishecki and the two companies, prohibiting the trading or purchasing of any securities from the companies, as well as prohibiting the companies and Cishecki from conducting any promotional activities.<\/p>\n
\u201cIt appears investors in EFCI\u2019s debt securities were led to believe that their investments were guaranteed when in fact they were not,\u201d reads a press release from BCSC.<\/p>\n
\u201cIt also appears that funds from later investors were being used to repay earlier investors and that investors\u2019 funds were mixed with the bank accounts of EFCI and EFC, which do not seem to have enough money to repay the amounts outstanding,\u201d it adds.<\/p>\n
BCSC\u2019s investigation is ongoing, and the notice of hearing has yet to be issued. However, the panel still found enough evidence to issue these temporary restrictions. The evidence includes:<\/p>\n
Agreements between investors and Everything Financial Group that show 32 investments totaling $9.5 million, all of them implying a minimum guaranteed rate of return.
\nA former Everything Financial Consultants Inc. employee providing a sworn statement that there are no underlying investments.
\nEverything Financial Consultants Inc. show that there are not enough assets to repay investors.
\nFour examples of investor deposits used to pay earlier investors.
\nThe BCSC Office of the Whistleblower received two complaints, one from an employee of a portfolio manager and one from a former Everything Financial Consultants employee.<\/p>\n
The counsel for EFCI, EFG, and Cishecki advised BCSC\u2019s hearing office that they were not taking a position with regard to the extension of temporary orders.<\/p>\n