A White Rock senior who lost her retirement savings through ‘low-risk’ investing is among 146 clients of a Surrey-based financial firm that’s alleged to have violated the B.C. Securities Act.(File photo)

A White Rock senior who lost her retirement savings through ‘low-risk’ investing is among 146 clients of a Surrey-based financial firm that’s alleged to have violated the B.C. Securities Act.(File photo)

BCSC alleges Surrey-based firm violated Securities Act

White Rock senior who lost her retirement savings among 146 clients affected

The daughter of a White Rock senior who lost her retirement savings through what she was told was “low-risk” investment is speaking out following news that officials with a Surrey-based financial firm are facing a hearing before the B.C. Securities Commission.

“She lost everything,” the daughter – who asked to remain anonymous to protect her mother’s identity – told Peace Arch News Monday (Dec. 21).

“It’s hurt her a lot.”

In a news release issued Dec. 8, BCSC alleges that a former registered investment fund manager and portfolio manager with Chartwell Asset Management, as well as two directors, “failed to exercise sufficient care, diligence and skill in calculating the value of one of its funds, and did not ensure that the fund was a suitable investment for clients.”

At issue is an arrangement in which the majority of the assets of a fund managed by the firm – the Magna High Income Fund – “were loaned to Health Capital Receivables Funding Special Purpose Corporation I, by 2011.

“The loan arrangement bore several indicators of risk,” the release states. “Health Capital missed payments or was late making payments, requested an extension or modification of the payment schedule, and didn’t provide information about its finances.

“The BCSC alleges that Chartwell calculated the net asset value of the Income Fund without having sufficient information about Health Capital. Chartwell also failed to re-evaluate the Income Fund’s valuation despite the risk indicators.”

After Health Capital defaulted on the arrangement in 2017, Chartwell suspended client redemptions from the Income Fund, the release continues.

BCSC alleges Chartwell “violated the B.C. Securities Act’s requirement that investment fund managers exercise ‘the degree of care, diligence and skill that a reasonably prudent person would exercise in the circumstances.’”

It also attributes the violation to directors Gregory Paul James Cameron of Surrey and Wah Bo Chew of Burnaby “because they authorized, permitted or acquiesced in the alleged misconduct.”

Advising representatives and chief compliance officers Matthew Evans Cameron of Surrey and Eric Mayrhofer of Coquitlam, the release states, are alleged to have “caused 146 clients to be invested in the Income Fund without having sufficient information about the Income Fund’s loan to Health Capital.”

“By doing so, they breached their duty to take reasonable steps to ensure that the investment was suitable for those clients.”

The White Rock woman’s daughter said her mom, a retired nurse nearing 80 years of age and known for her compassion throughout her health-care career, is among the 146 affected clients. Advised to take out a home equity loan to fund investments, she lost $58,000 and the ability to enjoy retirement in the way she had planned, the daughter said.

They have no expectations of recovering the funds, the daughter said, but hope that sharing the experience will help others avoid similar losses.

Noting the allegations have not been proven, the release adds that Chartwell surrendered its registration as an investment fund, portfolio manager and exempt market dealer in January 2020.

A date for the BCSC hearing is to be scheduled in February.



tholmes@peacearchnews.com
Like us on Facebook and follow us on Twitter

InvestingSurrey

Just Posted

Surrey Mayor delivering “virtual” State of the City Address on Tuesday. (Screen shot)
Surrey Mayor says city is ‘earning accolades from near and far’

Doug McCallum delivered his second State of the City Address on Tuesday since being elected in 2018

North Surrey Sport and Ice Complex. (Photo: larkgroup.com)
North Surrey rink, Newton playground earn B.C. excellence awards

Awards presented by BC Recreation and Parks Association

Delta council began with an Indigenous land acknowledgement for the first time on Monday, May 10, 2021.
Delta council opens first meeting with Indigenous land acknowledgement

Acknowledgment will be read at the start of each council/committee meeting and City of Delta event

Surrey Fire Service battled a fire at an apartment building in Fleetwood late Friday night (May 14), near 84th Avenue and 160th Street. (Photo: Shane MacKichan)
Surrey firefighters collecting donations for people displaced by Fleetwood apartment fire

Fleetwood BIA, community association also band together for donations, help

A prowling coyote proved no match for a stray black cat who chased it out of a Port Moody parking lot Friday, May 14. (Twitter/Screen grab)
VIDEO: Cat who chases away coyote asked to join Port Moody, Vancouver police 

Caught on camera Friday, the black cat jumps out from under a parked car and runs the wild animal out of a vacant lot

A forest of dance-protesters outside the BC Legislature on April 11. These participants were doing the Dance for the Ancient Forest in support of the Fairy Creek blockade and against old-growth logging. (Zoë Ducklow/News Staff)
Arrests begin at Fairy Creek blockade on Vancouver Island

Five protesters arrested as RCMP begin to enforce injunction

A thunderstorm pictured in Fraser Valley in 2021. (Black Press Media/Jaimie Grafstrom)
Wildfire concerns sparked after 320+ lightning strikes blasted B.C. yesterday

Approximately one-quarter of the province is currently listed as being at moderate risk of fire

The Combined Forces Special Enforcement Unit released a poster Tuesday, May 18 featuring the names and photos of more suspects involved in the Lower Mainland gang conflict.
Police issue warning for 8 more men involved in Lower Mainland gang conflict

B.C.’s gang task force says it’s expecting ‘violence to continue and escalate’

A restaurant server on White Rock’s Marine Drive serves customers on a roadside patio. Indoor dining and recreational travel bans have been in effect since late March in B.C. (Peace Arch News)
B.C.’s COVID-19 infection rate falls to 411 cases Tuesday

360 people in hospital, up slightly, two more deaths

The Banff National Park entrance is shown in Banff, Alta., Tuesday, March 24, 2020. THE CANADIAN PRESS/Jeff McIntosh
Minister asks Canadians to camp carefully in national parks as season starts

Kitchen shelters in Banff National Park closed, trails on Vancouver Island will only be one-way

Names of those aboard the ship are seen at Komagata Maru monument in downtown Vancouver, on Tuesday, May 18, 2021. The City of Vancouver has issued an apology for its racist role in denying entry to 376 passengers aboard a ship that was forced to return to India over a century ago. Mayor Kennedy Stewart says discrimination by the city had “cruel effects” on the Sikhs, Hindus and Muslims aboard the Komagata Maru, which arrived in Burrard Inlet on May 23, 1914. THE CANADIAN PRESS/Darryl Dyck
Vancouver mayor says sorry for city’s role in turning away South Asians in 1914

Kennedy Stewart has declared May 23 as the annual Komagata Maru Day of Remembrance

A crew of WestCoast WILD Adventures employees tackled an onslaught of litter left at the ‘Locks of Love’ fence at Wally Creek on May 2. (Anne-Marie Gosselin photo)
Litter woes consume popular ‘Locks of Love’ fence on B.C.’s Pacific Rim

Popular view spot near Tofino plagued by people hanging masks and other unwanted garbage

Vincent Doumeizel, senior advisor at the United Nations Global Compact on Oceans, as well as director for the Food Programme for the Lloyd’s Register Foundation, pulls up some sugar kelp seaweed off the French coast in April 2020. He was the keynote speaker during the opening ceremony of the inaugural Seaweed Days Festival. (Vincent Doumeizel/Submitted)
Let’s hear it for seaweed: slimy, unsexy and the world’s greatest untapped food source

Experts talks emerging industry’s challenges and potential at Sidney inaugural Seawood Days Festival

Most Read