An unnamed B.C. resident will get at least half of their money back after taking out a $1.75-million mortgage on their home and giving the money to a man who went on to use $900,000 for personal purposes.
The B.C. Securities Commission confirmed Thursday has repaid $900,000 and a $50,000 penalty to the investor, who also gets $30,000 in accrued interest (just over one half year’s worth despite the funds being transferred in 2015).
Sidhu had solicited the money on behalf of his father’s company Bracetek, which was in the business of developing, manufacturing and selling braces used in construction.
“Bracetek did not file a prospectus, a formal document providing details of an investment. The company did not have an exemption to sell securities without a prospectus, nor was the investor eligible for a non-prospectus securities purchase,” the commission noted in a news release.
Bracetek used $900,000 of the investor’s funds for unpaid licensing fees owed to companies controlled by Sidhu, the commission noted.
According to the settlement agreement, the investor has also filed a civil claim against Sidhu. It’s unstated what became of the other funds ($850,000).
