A Vancouver man used two false identities to hide the fact that he owned nearly a quarter of the shares of a publicly traded company, according to the BC financial markets regulator.
The BC Securities Commission’s allegations have not been proven. The commission’s executive director will present evidence at a hearing on the case sometime after Nov. 10.
The BCSC claims that Vancouver resident Erwin Liem owned a total of 24.3 percent of the shares in a company now known as Mydecine Innovations Group, but formerly known as NewLeaf Brands, New Age Brands Inc. and New Age Farm Inc.
According to the commission, between July 2014 and April 2017, Liem used two false identities – Surya Chandra and Li Hong Chang – to acquire and hold the shares. According to a hearing published on the BCSC website, he also held some shares in his own name and some through companies he controlled.
The commission also alleges that Liem used a false passport to open bank accounts under the alias “Chandra”, obtained a credit card in that name and corresponded and signed documents as both Chandra and Chang.
What he didn’t do, according to the BCSC, is file insider documents revealing his ownership interest in the company, which is required for anyone who owns 10 percent or more of the stock of a publicly traded company.
Liem also allegedly failed to publish early warning reports and a press release about his ownership stake, which also violates the rules for people controlling such a significant portion of a company.
“By using the false identities to hide his ownership and control of the company’s stock, the BCSC alleges that Liem engaged in deceptive behavior that offends the capital markets,” the committee said in a press release.
Liem is due to appear at the BCSC Vancouver office on Nov. 10 if he wants to be heard before the committee schedules a hearing on the matter.