BC regulator alleges Ponzi schemeBy The IJ Staff | August 03 2018 01:30PM
The British Columbia Securities Commission (BCSC) announced Aug. 3 that it has issued a notice of hearing alleging that Todd Norman John Bezzasso, Bezzaz Holdings Group Ltd., Nexus Global Trading Ltd., Wei Kai Liao (a.ka. Kevin Liao) and Fiorino Corsi participated in a fraudulent investment scheme.
Bezzasso was the sole director and officer of Bezzaz and Nexus, Liao was a finder for Bezzaz and a licensed insurance agent, and Corsi was a finder for Bezzaz and Nexus, says the regulator. All three men are B.C. residents.
Allegedly raised about $5 million
The Executive Director of the BCSC alleges that between Feb. 2015 and March 2016, Bezzasso raised approximately $5 million from investors through Bezzaz and Nexus. “He told investors the companies would generate monthly returns from various investments and products, after he knew or ought to have known that they would not generate sufficient returns to pay investors as promised. By February 2015, Bezzasso was operating a Ponzi scheme, with existing investors being paid out of funds that came from new investors,” alleges the regulator.
The notice also alleges Liao advised investors who invested approximately $1.6 million in Bezzaz, despite not being registered under the Securities Act. “He raised $382,000 of this after he knew that Bezzaz was having problems paying investors. He did not disclose what he knew to these investors,” says the BCSC.
The notice alleges Corsi raised $15,000 from one Nexus investor after he knew that Bezzaz and Nexus were having problems paying investors. He did not disclose this to the investor.
These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on Sept. 11, 2018 at 9:00 a.m., says the regulator.