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Important information

• Government Actions:

  Government Action: BBB reports on known government actions involving business’ marketplace conduct:

  Gov. Action
  

  On January 14, 2019: The BC Securities Commission, considering it necessary and in the public interest, under section 161(3) of the Act, extends the Temporary Order until October 04 2019.

  
  

  On May 16, 2017: The BC Securities Commission, considering it necessary and in the public interest, under section 161(3) of the Act, extends the Temporary Order until May 22, 2018, and adjourns the executive director's application to extend the Temporary Order to Tuesday, May 22, 2018.
  
  
  
  On May 16, 2017: The BC Securities Commission, considering it necessary and in the public interest, under section 161(3) of the Act, extends the Temporary Order until May 22, 2018, and adjourns the executive director's application to extend the Temporary Order to Tuesday, May 22, 2018.
  
  
  
  On February 7, 2017: The Executive Director of the British Columbia Securities Commission (BCSC) has issued a temporary order to allow BCSC staff to complete their investigation into whether 13 people and nine companies have violated securities legislation. The respondents have raised approximately $36 million from over 300 investors.
  
  
  
  According to the temporary order, Aik Guan "Frankie" Lim and Scott Thomas Low, both B.C. residents, are the founding directors of FS Financial Strategies Inc. There are five additional B.C. companies, one Alberta company, and two federally registered companies associated with FS Strategies (collectively, the FS Group):
  
  
  
  FS Financial Services Inc.;
  
  FS Financial Strategies Services Inc.;
  
  WL Strategic Capital Partners Inc.;
  
  FS Stellar Insurance Services Inc.;
  
  Verico FS Capital Inc.;
  
  FS Financial Services (Alberta) Inc.;
  
  CC Cornerstone Credit Ltd. now known as Flexfi Inc., which is federally registered; and
  
  FS Financial Systems Inc., which is federally registered.
  
  
  
  During the course of their investigation, BCSC staff learned that FS Strategies' expenses exceeded its revenue each year, with annual net losses increasing from approximately $800,000 in 2011 to over $7 million in 2015. Through the investigation, BCSC staff also learned that between 2010 and 2014, FS Strategies raised approximately $18 million from 168 investors using loan agreements. FS Strategies has never filed a prospectus, offering memorandum, or a report of exempt distribution. It appears some of the investors did not qualify for exemptions under the Act.
  
  
  
  In December 2014, Lim, Low, and FS Strategies each entered into an undertaking with the Executive Director to cease trading and distributing securities until FS Strategies filed required reports, provided documentation about the exemptions claimed, and refunded all loans from individuals who did not qualify for an exemption. These steps have not been completed and the undertakings remain in effect.
  
  
  
  BCSC staff maintain that four months after signing the undertakings, FS Financial Services (Alberta) Inc. was incorporated in Alberta and used by the respondents to raise an additional $16 million from 105 investors, 101 from B.C.
  
  
  
  Between April 2014 and September 2016, WL Strategic Capital Partners Inc. raised an additional $2.7 million from approximately 45 investors. BCSC staff believe this money was transferred to various FS Group companies.
  
  
  
  The BCSC has also issued freeze orders over 11 bank accounts.
  
  
  
  The Executive Director has issued a temporary order prohibiting all the respondents from trading in or purchasing any securities with limited exceptions. Under the order, all securities of the FS Group companies have been cease traded.
  
  
  
  You may view the temporary order on BCSC website at www.bcsc.bc.ca, by typing the names of any of the respondents or 2017 BCSECCOM 33 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.

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