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Regulators of British Columbia suspect a Ponzi scheme

by

Justine Montminy

August 6, 2018 09:45

The British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that Todd Norman John Bezzasso, Bezzaz Holdings Group, Nexus Global Trading, Wei Kai Liao (also known under the name of Kevin Liao) and Fiorino Corsi participated in a stratagem of investment fraud (Ponzi scheme).

Mr. Bezzasso was the sole director and officer of Bezzaz and Nexus, Mr. Liao was a researcher for Bezzaz and an insurance agent chartered, and Mr. Corsi was a researcher for Bezzaz and Nexus, and informs the regulator. The three men are residents of British Columbia.

Thefinancial markets Authority explains the fraud of Ponzi schemes as being a ploy which ” is to take money from an investor to pay fake returns to other investors or simply to repay investors who want their money back. Fraudsters can thus give a false impression that the invested money earns good returns and that there is no problem to get his money back “.

$ 5 million collected

The executive director of the BCSC alleges that between February 2015 and march 2016, Mr. Bezzasso has collected approximately $ 5 million from investors through the companies Bezzaz and Nexus.

“He said to the investors that the companies would generate the monthly returns from the various investments and products, after he knew or should have known that they would generate no sufficient returns to pay investors as promised. In February 2015, Bezzasso operated a Ponzi scheme, existing investors are paid with funds from new investors, ” says the regulator.

Difficulties to pay the investors

The notice also alleges that Mr. Liao has experience in advising investors who have invested approximately $ 1.6 million in the company Bezzaz, although they have not been registered under the Securities Act. “It would have taken 382 000 $ after knowing that Bezzaz had difficulties to pay the investors. He did not reveal what he knew to these investors, ” said the BCSC.

The notice also alleged that Mr. Corsi has collected 15 000 $ from an investor’s point of Nexus after having learned that Bezzaz and Nexus had problems to pay the investors. However, it did not reveal to the investor.

These allegations, however, have not been proven. According to the BCSC, the lawyer of the director-general will be asked to a group of commissioners to set dates for a hearing into the allegations on 11 September.

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