A Burnaby man who allegedly made nearly $40,000 in commissions but eventually lost nearly all of his investors’ money is being accused of trading and advising in securities without being registered to do so.
Between July 2016 and September 2016, Shijun “Clark” Zhu entered into investment agreements with five investors, according to a notice of hearing filed by the B.C. Securities Commission.
The BCSC claims Zhu got discretionary authority over trading accounts with assets totalling USD $527,330 (about $703,194 Canadian) and that Zhu conducted trades for investors on a trading platform and expected to earn a portion of the profits from successful trading.
While Zhu had been registered to sell scholarship plan securities in 2011 and mutual fund securities from 2011 to 2012, the commission alleges he was not registered under the Securities Act in any capacity from 2016 to 2018.
Despite not be registered, the commission claims Zhu traded in securities when he used the platform to “trade contracts or instruments based on currency.”
Zhu earned USD $29,492 (about $39,327 Canadian) in commissions by trading for the investors, but by 2018 he had lost nearly all of their funds, according to the BCSC's notice of hearing.
A commission hearing for Zhu is scheduled for Sept. 16 in Vancouver.
The allegations against him have not been proven.