Popular B.C. investment group linked to fraud scandal
The founder of a well-known B.C. investment firm and his two companies are connected to suspected fraud.
The B.C. Securities Commission (BCSC) has evidence that Peter Cishecki, Everything Financial Group (EFG), and Everything Financial Consultants Inc. (EFCI) might have committed fraud under B.C.’s Securities Act.
In response, the BCSC has extended a temporary order to Cishecki and the two companies, prohibiting the trading or purchasing of any securities from the companies, as well as prohibiting the companies and Cishecki from conducting any promotional activities.
“It appears investors in EFCI’s debt securities were led to believe that their investments were guaranteed when in fact they were not,” reads a press release from BCSC.
“It also appears that funds from later investors were being used to repay earlier investors and that investors’ funds were mixed with the bank accounts of EFCI and EFC, which do not seem to have enough money to repay the amounts outstanding,” it adds.
BCSC’s investigation is ongoing, and the notice of hearing has yet to be issued. However, the panel still found enough evidence to issue these temporary restrictions. The evidence includes:
- Agreements between investors and Everything Financial Group that show 32 investments totaling $9.5 million, all of them implying a minimum guaranteed rate of return.
- A former Everything Financial Consultants Inc. employee providing a sworn statement that there are no underlying investments.
- Everything Financial Consultants Inc. show that there are not enough assets to repay investors.
- Four examples of investor deposits used to pay earlier investors.
- The BCSC Office of the Whistleblower received two complaints, one from an employee of a portfolio manager and one from a former Everything Financial Consultants employee.
The counsel for EFCI, EFG, and Cishecki advised BCSC’s hearing office that they were not taking a position with regard to the extension of temporary orders.
Cishecki is well-known as a B.C. investment advisor, having appeared in national media, including CTV, to provide financial advice.