A securities regulator in Canada last week extended a temporary order against a financial advisor in suburban Vancouver and two companies connected to him because of suspected fraud, according to a statement by the BC Securities Commission.
The Commission’s staff provided evidence to the panel indicating that Peter Cishecki, Everything Financial Group and Everything Financial Consultants Inc. may have committed fraud under British Columbia’s Securities Act, according to a statement last Thursday from the regulator.
Cishecki did not return a call Wednesday to his office to comment.
“While the investigation is ongoing and no Notice of Hearing has yet been issued in the matter, the panel found that there is enough evidence to establish on its face a case of fraud on the part of [Everything Financial Group and Everything Financial Consultants Inc.] and Cishecki,” according to the statement.
“It appears investors in [Everything Financial Consultants Inc.’s] debt securities were led to believe that their investments were guaranteed when in fact they were not,” according to the statement.
“It also appears that funds from later investors were being used to repay earlier investors and that investors’ funds were mixed with the banks accounts of [Everything Financial Group and Everything Financial Consultants Inc.,] which do not seem to have enough money to repay the amounts outstanding,” according to the statement.
The evidence included agreements between Everything Financial Group and investors showing 32 investments totaling $9.5 million, all indicating a minimum guaranteed rate of return as well as sworn statements from a former firm employee there are no underlying investments.
Regulators also noted the firm’s banking records, which show insufficient assets to repay the investors and four examples of investor deposits being used to pay earlier investors.
Regulators also cited two complaints to the BC Securities Commission’s Office of the Whistleblower – one from an employee of a portfolio manager, and one from a former firm employee.
“Given that evidence, the panel concluded that extending the temporary order is necessary and in the public interest,” according to the statement.
The BC Securities Commission’s order prohibited trading or purchasing of any firm securities, and prohibited the firm and Cishecki from engaging in promotional activities. The order will remain in place until a hearing is held and a regulatory panel issues a decision.
The BC Securities Commission is akin to a U.S. state securities regulator and describes itself as an “independent provincial government agency.”
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