Vancouver Island man defrauded $1M from investor, BCSC rules
The British Columbia Securities Commission (BCSC) has concluded that a Sooke, B.C., man defrauded an investor of $1 million by lying to them about the ownership of a well-known hotel.
In a ruling released Tuesday, the BCSC said Timothy Craig Durkin mislead the investor by saying his company, SSH Holdings Limited, owned 100 per cent of the shares for the Sooke Harbour House hotel in late 2015 when, in fact, it did not own any percentage of the property.
Durkin then told the investor that they would own 40 per cent of the hotel if they bought 40 per cent of its shares for $2 million from SSH.
Based on misleading information, the investor provided SSH with a $1-million advance for the shares, which was later spent and never recovered by the investor, according to the BCSC.
From December 2015 to March 2016, the BCSC found, Durkin – acting as the director of SSH – made false statements about the hotel's ownership on three separate occasions to mislead the investor.
Durkin argued that he believed the investor and her advisors were aware that SSH was in the process of trying to purchase the hotel, and were not yet the owners when Durkin was trying to raise funding.
But, the BCSC found that Durkin "chose not to correct erroneous information and misunderstandings about the ownership of the hotel’s shares" in emails with the investor's accountant.
The BCSC panel pointed to one email from 2015 as the most prominent piece of evidence in its decision.
When the investor's lawyer asked if SHH already owned the Sooke Harbour House hotel, Durkin said his company did.
"Is Holdco already the sole shareholder of Opco, or will it be acquiring all of Opco's shares concurrently with GB's purchase of Holdco's shares?" reads an excerpt from an email between the investor's lawyer and Durkin.
"Already acquired," responded Durkin.
Ultimately, the BCSC panel found that Durkin was "deceitful" and that he misled the investor. The securities commission has now directed all parties to make submissions on sanctions.
The Sooke Harbour House has had a tumultuous legal history in recent years. The property has been at the centre of a legal dispute between the couple that originally purchased the property decades ago, alongside prospective buyers, including Durkin.
Civil court documents dating back to March 2020 show that a judge ruled that Durkin, alongside SHH Holdings Limited and other partners, owed the original owners of the hotel more than $760,000.
CTVNews.ca Top Stories
What to know about avian influenza in dairy cows and the risk to humans
Why is H5N1, or bird flu, a concern, how does it spread, and is there a vaccine? Here are the answers to some frequently asked questions about avian influenza.
'I was scared': Ontario man's car repossessed after missing two repair loan payments
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
opinion The special relationship between King Charles and the Princess of Wales
Royal commentator Afua Hagan writes that when King Charles recently admitted Catherine to the Order of the Companions of Honour, it not only made history, but it reinforced the strong bond between the King and his beloved daughter-in-law.
Man convicted of involuntary manslaughter in father's drowning, told police he was baptizing him
A Massachusetts man who told police he was exorcising a demon and performing a baptism when he shoved his father's head under water multiple times has been convicted of involuntary manslaughter in his death.
New Norad commander calls Canada's defence policy update 'very encouraging'
American troops will be spending more time training in the Far North, the new commander of Norad says, a strategy that fits 'hand-in-glove' with Canada's renewed focus on Arctic defence.
$70M Lotto Max winners kept prize a secret from family for 2 months
During a special winner celebration near their hometown, Doug and Enid shared the story of how they discovered they were holding a Lotto Max ticket worth $70 million and how they kept this huge secret for so long.
Are Canadians getting sick from expired food?
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
Documents reveal Ottawa's efforts to get Loblaw, Walmart on board with grocery code
It was evident to the federal government as early as last fall that Loblaw and Walmart might be holdouts to the grocery code of conduct, jeopardizing the project's success.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.