It was brought to light by the British Columbia Securities Commission that an investor was a victim of a fraudulent act committed by Brendan James Schouw and Hornby Residences Ltd.
A business deal was made by Schouw with an investor who was swayed by the company to have $1 million invested into a real estate project in Vancouver with an assurance of getting back an interest of 18 per cent per annum. Conversely, a considerable amount of the money gotten from the investor was passed on to Schouw’s personal account from the Hornby Residences bank account.
According to the BCSC panel, they discovered that the developer used about $75,000 on his own mortgage payment and for a different property management firm, even though the investor was guaranteed that the $1 million investment was only for the housing project.
Another discovery made by the panel was that as office and sole director of Hornby, Schouw accepted and allowed the wrongdoings of Hornby. Therefore, they are accountable for the con pulled by Hornby. The panel didn’t go ahead with the further charge concerning the $440,000 made by the investor.