Gary Ng fraudulently bought Vancouver brokerage: panel
Gary Man Kin Ng bragged about his success in investing in technology, real estate and manufacturing in Canada and China.
Gary Man Kin Ng, from Winnipeg, obtained roughly $172 million in loans through fraudulent means to buy a Vancouver investment firm, an independent group from the Securities Industry Regulatory Organization of Canada has determined. securities (IIROC) on May 9.
The country’s investment industry regulator is now saying a sanctions hearing is to be scheduled for Ng, who has also proven uncooperative with investigators.
Ng is potentially subject to fines and conditions on continued activity in the market, or even a permanent ban.
IIROC proceedings are administrative and, according to the Globe and Mail, the RCMP’s Integrated Procurement Enforcement Team in Ontario laid fraud and money laundering charges against Ng in January. He is presumed innocent of any criminal charges unless or until a court decides otherwise.
The regulator had accused Ng and Donald Warren Metcalfe – who faces a hearing in November – of duping their lenders, who helped the couple buy PI Financial in 2018 for $100million. Another $72 million was fraudulently borrowed.
Ng personally guaranteed the loans used to purchase the business, however, “despite his representations, Ng did not own, control, or have business authority over the pledged securities accounts,” according to the IIROC. “Instead, ownership and control of the collateral was tampered with by Ng and Metcalfe.”
Prior to buying PI Financial, which would employ more than 300 people across Canada, Ng, 38, was an authorized person and registered representative for the sale of securities. He owned a Winnipeg-based company named Chippingham Financial Group Limited through various corporate structures designated by IIROC as Ng Group. In November 2018, Ng, through the Ng Group, acquired a 100% controlling interest in PI Financial, IIROC said in a November 2020 Notice of Hearing.
Ng was accused of “grossly overestimating” the value of assets in the accounts and altering securities account statements.
Although PI Financial is 100% owned by Ng, company officials “became aware of the issues regarding Ng’s alleged ownership of securities accounts in late January 2020 and immediately reported these issues to IIROC.” indicates the opinion.
Ng “presented himself to others as a hugely successful businessman who created enormous personal wealth through highly successful technology, real estate and manufacturing investments in Canada and China.”
At the time of the PI Financial purchase, Ng spoke about the deal with BNN Bloomberg, whose hosts noted how unique the deal was, given that most investment firms are bought by large businesses, not individuals.
“Metcalfe also perpetrated fraud by directly and actively participating with Ng in the forgery and distribution of false and/or fictitious account documents to lenders,” IIROC alleged.