- Category: Economic
- Published Friday, January 29, 2016
- CTV News
VANCOUVER -- The B.C. Securities Commission is alleging that a brother and sister who operated two companies committed US$60 million in fraud and distributed securities illegally.
The commission says Winter Huang was a director and controlling mind of Pegasus Pharmaceuticals Group Inc., and Careseng Cancer Institute Inc., while his sister Vicky Dancho was a director, CEO and president of Careseng Cancer.
The commission alleges that Pegasus Pharmaceuticals committed fraud by issuing $36.4 million in bonds to Taiwanese investors that included guarantees by Careseng Cancer.
It says Huang and Dancho knew, or ought to have known, that these guarantees were false as Careseng Cancer had no operations, no employees, no revenue and less than US$50,000 in assets.
The commission says Pegasus fraudulently raised about US$15.4 million for projects in the Republic of Georgia and US$11.1 million for a project in China, of which only about US$2 million went toward the projects.
Pegasus Pharmaceuticals declined to comment through its lawyer, Owais Ahmed.