CFO will distribute funds to victims of VG Capital Group Inc.
Victims of fraudulent financial consulting firm VG Capital Group Inc. will finally be getting some of their money back, according to the Ministry of Justice’s BC Securities Commission (BCSC).
A total of $928,769 has been recovered and will be distributed to 21 claimants in the fourth and largest fund restoration case ever concluded by the Civil Forfeiture Office (CFO).
The CFO, operating under BC’s Civil Forfeiture Act, was able to recover the funds in 2009, two years after VG Capital’s director, William Christopher Teet Fung Chan, was found dead by gunshot wound in a parked vehicle in May of 2007, according to a Canadian Press (CP) story published by the Vancouver Sun.
Chan, with the help of two partners operating the VG Capital Group Inc., amassed almost $1 million for himself from 45 defrauded investors who hired his company’s services.
VG Capital underwent a settlement agreement with the BCSC in 2008 after being found guilty of misappropriating client’s investments.
According to CP, Chan spent the investors’ money on his lavish lifestyle and to buy vehicles and Lower Mainland properties.
Chan reportedly laundered money by transferring funds through different businesses and bank accounts.
The BSCS said that the amount recovered is only a third of the total money earned by VG Capital.
Since 2009, the CFO worked to identify Chan’s victims, who are spread across BC, Alberta, Saskatchewan and Ontario, in order to file claims.
The CFO published a legal notice in November and have informed qualified claimants that they will recover up to 70 per cent of their losses.
Approximately $400,000 will be awarded to nine residents of BC while the rest would be divided among 12 claimants from other provinces.
The CFO was keen to note however that only in cases where money forfeited could be linked directly to victims can they be awarded claims.
“Once again, collaborating with the Civil Forfeiture Office has helped to further our efforts to protect the interests of investors – in this case, a number of Canadians who had been defrauded of significant amounts,” said Brenda Leong, chair of BCSC.
“Civil forfeiture’s value extends beyond deterring unlawful activity and depriving criminals of ill-gotten gains – as this case once again proves. It’s extremely positive to be able to return money to bona fide victims,” added attorney general and minister of justice Suzanne Anton.
“Our government continues to support this very worthwhile program, which impacts those committing crimes such as fraud, drug, gang and other activities that threaten the safety and security of British Columbians.”