The B.C. Securities Commission (BCSC) will return an additional $178,750 to an investor who lost money as a result of an illegal distribution of securities.
The investor provided $1.75 million to Bracetek Industries Group Ltd. after obtaining a $2 million mortgage. She was assisted in the investment by Geoffrey Rajay Sidhu, the son of Bracetek’s sole officer and director.
Bracetek did not file a prospectus, a formal document providing details of an investment. The company did not have an exemption to sell securities without a prospectus, nor was the investor eligible for a non-prospectus securities purchase.
Sidhu paid $950,000 to the BCSC under a settlement agreement, with $900,000 of that representing the amount that Sidhu obtained as a result of his misconduct. The BCSC must make such funds available to harmed investors. As a result, the investor received $900,000 plus interest.
Separately, Bracetek was ordered to pay $850,000, and in March 2024, the BCSC received $178,750 in partial satisfaction of that order. That amount, plus the $4,600 those funds have accrued in interest, will be paid in full to the investor, who is the only person to have filed a claim.
