VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 2, 2012) - A British Columbia Securities Commission panel has released the reasons for its decision to revoke a temporary order and maintain a freeze order against two Burnaby residents and an unregistered Burnaby company.
On April 30, 2012, the executive director issued a notice of hearing and temporary orders against Yan Zhu (also known as Rachel Zhu), Guan Qiang Zhang, and Bossteam E-Commerce Inc, alleging that they were running a Ponzi scheme. Zhu and Zhang are Burnaby residents.
On April 30, the commission made an order to freeze certain of the respondents' assets.
The orders were made in connection with an investigation into certain activities of Zhu, Zhang and Bossteam. BCSC staff is alleging that those activities contravened the Securities Act.
At a hearing on July 18, the executive director asked the panel to extend the temporary orders, and Zhu, Zhang and Bossteam applied to have the freeze order revoked. The panel refused both applications in a September 5 decision.
With respect to the executive director's request to extend the temporary orders, the panel stated in its reasons that they did not find sufficient evidence of fraud, and ruled that it was neither "necessary [n]or in the public interest to extend the temporary orders".
With respect to Zhu, Zhang and Bossteam's application to have the freeze order revoked, the panel stated that it was "premature" to revoke or vary the freeze order because commission staff is not yet in a position to determine what, if any, further steps or orders should be made in connection with the allegations contained in the notice of hearing.
The panel noted that the purpose of a freeze order is to preserve assets for future regulatory and/or common law claims.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Yan Zhu, Guan Qiang Zhang, Bossteam E-Commerce Inc. or 2012 BCSECCOM 377 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
If you have questions, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
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