An investment firm in Richmond specializing in commercial property flipping has been suspended for violating securities laws.
The B.C. Securities Commission said in a statement Wednesday it has suspended the registration status of Genesis Wealth Management Corporation “for failing to comply with various regulatory requirements.”
Genesis had been registered as an exempt market dealer firm, allowing it to sell securities to investors without a prospectus — a document that outlines the nature of the investment and its risks.
As such, in exchange for less burdensome regulations and selling more risky products, exempt market dealers, such as Genesis, may only sell to certain investors who must meet high suitability standards for what’s being offered.
The commission stated Genesis “primarily distributes the securities of a related-party fund, Manna Industrial Property (Value-Add) Limited Partnership (Manna).
“Manna’s stated business objectives are to provide investors with income and capital growth by acquiring commercial real estate, renovating it, renting it, and ultimately selling the properties, using the proceeds to acquire other properties.”
The commission stated it imposed various conditions on Genesis’ registration in February after a compliance review revealed “significant deficiencies” and Genesis subsequently failed to meet all of the conditions.
It’s unclear what Genesis’ exact infractions are. Glacier Media has reached out to its founder and president Nancy Wei and chief marketing officer Frank Huang for comment.
The Genesis website shows 17 dealing representatives and its last “news” update was June 2022. Neither Genesis or Manna appear to have properties under their ownership, according to the Land Owner Transparency Registry.
