Four investors who lost nearly $415,000 as a result of a Burnaby man's unregistered trading and advising are getting back the commission they paid him for his work.
According to allegations in a 2020 BC Securities Commission notice of hearing, Shijun "Clark" Zhu worked for five investors between July 2016 and July 2018, managing their trading accounts and making investment decisions for them when he traded "contracts or instruments based on currency."
But Zhu wasn't registered to trade or advise in securities at the time, according to the commission, and it alleged Zhu had lost almost all of his investors' money by 2018.
Zhu and the commission settled without a hearing in 2021.
The settlement agreement said Zhu's trading "caused or contributed to the depletion of the funds in the investors’ trading accounts" but didn't state a specific sum.
Zhu admitted he had traded securities and advised investors without being registered, and the commission banned him from trading on B.C.'s capital markets, except as an investor, for 10 years.
The commission also ordered him to pay back $38,639.69 he received in commissions for his unregistered trading and advising.
This week, the commission ordered that sum to be divided between four investors who came forward with claims within a three-month notice period.
The four investors claimed they had lost a total of $414,519.74, according to the commission's ruling.
"Since the funds are insufficient to pay the investors' claims in full, the panel ordered that the money – together with accrued interest – be divided on a prorated basis," stated a commission news release Wednesday.
Follow Cornelia Naylor on X/Twitter @CorNaylor
Email [email protected]
