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
Grandparents killed in wrong-way crash on Hwy. 401 identified
The Indian couple killed in a wrong-way police chase crash on Highway 401 earlier this week has been identified by the Consulate General of India in Toronto.
Police arrest 3 Indian nationals in killing of B.C. Sikh activist Hardeep Singh Nijjar
Three people have been arrested and charged in the killing of B.C. Sikh activist Hardeep Singh Nijjar – as authorities continue investigating potential connections to the Indian government.
TD worst-case scenario more likely after drug money laundering allegations: analyst
TD Bank Group could be hit with more severe penalties than previously expected, says a banking analyst after a report that the investigation it faces in the U.S. is tied to laundering illicit fentanyl profits.
Human remains found in rural Sask. possibly a decade old, RCMP say
RCMP say human remains found in a rural area in central Saskatchewan may have been there for a decade or more.
2 charged after police find 'concerning and diverse' explosives at Manitoba home
Winnipeg police say they have arrested two people in their 20s after a large amount of explosives were found in a home outside of Winnipeg, Man.
Canadian doctor concerned new weight-loss drug Wegovy may be used inappropriately
As Wegovy becomes available to Canadians starting Monday, a medical expert is cautioning patients wanting to use the drug to lose weight that no medication is a ''magic bullet,' and the new medication is meant particularly for people who meet certain criteria related to obesity and weight.
Spain abolishes national bullfighting award in cultural shift
Spain scrapped an annual bullfighting award on Friday, prompting a rebuke from conservatives over a backlash against a centuries-old tradition they see as an art form but which has run into growing concern for animal welfare.
Drew Carey is never quitting 'The Price Is Right'
Drew Carey took over as host of 'The Price Is Right' and hopes he’s there for life. 'I'm not going anywhere,' he told 'Entertainment Tonight' of the job he took over from longtime host Bob Barker in 2007.
Police officer hit by driver of fleeing vehicle in Toronto
York Regional Police say they are continuing to search for a suspect in an auto theft investigation who was captured on video running over a police officer in Toronto last month.