A Mission man who raised at least $452,000 from investors fraudulently presented himself as a successful day-trader, according to the B.C. Securities Commission.
A decision reached Thursday by the BCSC states that William Wade Furman deceived investors about his status as a registrant, his prior history of success in trading in securities and his use of investor funds when he convinced 10 people to invest close to half a million dollars between April 2012 and June 2014.
Furman incorporated two B.C. companies – Liquidus Holdings Inc. in February 2012 and Liquidus Capital Inc. in June 2012.
He then convinced investors to acquire securities in one or both of these corporations, which dissolved in 2015.
The report indicates that of the $452,000 raised from investors, Furman transferred $229,000 into trading accounts in which he lost most of the money.
The remaining $223,000 was used for purposes unrelated to trading in securities, primarily on Furman’s personal living expenses and loan repayments, the BCSC said.
The decision indicates that Furman deceived investors by providing them with fictitious account statements to show purported returns on investment that bore no relationship to the fact that Furman lost almost all of the funds invested in his day trading.
Of the 10 investors, five testified during the BCSC hearing on behalf of a total of six investors (as one of the witnesses also testified on behalf of a corporation that was one of the investors).
Three of the remaining four investors spoke to commission investigators during the investigation of the matter, and notes of those conversations were entered as evidence during the hearing.
Furman emailed an apology to one of the investors, saying he wished he could talk to all the investors who he “caused such unforgivable pain too.”
He went on to write: “I’m not going to attempt to explain myself, or make excuses for what has happened, cuz ultimately it doesn’t matter nor is it relevant.
“I was responsible for your hard earned money and savings and like a complete idiot with serious mental issues I lost control, blew up and created a ridiculous mess of lies while hurting a lot of people that I cared about.”
The panel determined Furman committed fraud in contravention of section 57(b) of the B.C. Securities Act. He now has until May 9 to respond before the commission decides what kind of sanctions he might face.