The British Columbia Securities Commission (BCSC) announced it has reached settlement agreements with three B.C. men and one man from Alberta who were involved in companies that were illegally selling shares.

The BCSC says Chung-Shen "Johnson" KaoGagan Deep Bachra, Chi Kay "Dixon" Wong and Meng Cher "Phillip" Tsai were nominee directors of three companies – FS Financial Services (Alberta) Inc., Verico FS Capital Inc., and FS Financial Systems Inc. – that raised a total of $19.6 million from 122 investors between 2016 and 2017. All of the money was raised without a prospectus. None of the affected investors qualified for an exemption from the prospectus requirements under the Securities Act.

Kao, an Alberta resident, admitted that by acting as a nominee director, he engaged in conduct abusive to the capital market. The other three admitted to allowing an illegal distribution of securities.

As part of the settlement, Wong has agreed to pay $15,000, while Tsai and Bachra have agreed to pay $7,500 each. All four men are required to take a course on the duties and responsibilities of corporate officers and directors. Wong, Bachra and Tsai are also prohibited for two years and Kao is prohibited for one year from trading in or purchasing securities or exchange contracts (other than in a personal Registered Retirement Savings Plan or Tax Free Savings Account) or relying on any exemption under the Securities Act; they are prohibited from engaging in any investor relations, from being a director or officer of any issuer or registrant or from acting as a registrant or promoter. All four are also prohibited from acting in a management or consultative capacity in connection with the securities market.