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
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Orca calf that was trapped in B.C. lagoon for weeks swims free
An orca whale calf that has been stranded in a B.C. lagoon for weeks after her pregnant mother died swam out on her own early Friday morning.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
'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.
Powerful tornado tears across Nebraska, weather service warns of 'catastrophic' damage
Devastating tornadoes tore across parts of eastern Nebraska and northeast Texas Friday as a multi-day severe thunderstorm event ramped up in the central United States.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Trump's lawyers try to discredit testimony of prosecution's first witness in hush money trial
Donald Trump's defence team attacked the credibility Friday of the prosecution's first witness in his hush money case, seeking to discredit testimony detailing a scheme between Trump and a tabloid to bury negative stories to protect the Republican's 2016 presidential campaign.