A Richmond man is now on trial facing two charges for alleged trading misconduct dating back to 2017.
Richard Yung Shyang Chen is accused of violating "quasi-criminal" provisions of the B.C. Securities Act, according to a BC Securities Commission (BCSC) media release on March 21, 2024.
Chen, 37, was charged with one count of alleged unlawful trading in a security and one count of allegedly distributing securities without a prospectus.
The alleged conduct took place in Burnaby in 2017 and 2018 and charges were laid following an investigation by BCSC's criminal investigations branch.
Chen was arraigned on the charges last September. He is now on trial before Vancouver Provincial Court Judge Ellen Gordon.
He was on the stand July 3 answering questions from defence lawyer Jessica Dawkins and Crown prosecutor Kevin Marks about his time working with Brent Chow’s company and as part of an investment club with Chow.
Chen testified he began having concerns about the club, and that he had put $100,000 into a real estate project but found those funds had been transferred to another project.
“I was worried that he was scamming everybody,” Chen said, alleging Chow was spending money on “friends, women, drinks.”
Chen told the court he filed an anonymous complaint with the BCSC in April 2019.
Marks presented Chen with some photographs from events, pictures in which Chen was present.
The prosecutor first asked Chen if he was working for Chow at the time of a January 2018 photograph.
“I was invited as an investor,” he said.
Marks asked again.
“At this moment, no,” Chen responded with regard to the photo.
Then, the judge intervened: “Were you working for him?”
“Yes,” Chen said.
Questioning then shifted to queries about Chen’s work for World Financial Group (WFG) as a mutual funds dealer starting in August 2016. He had also been selling insurance, the court heard.
Marks produced documents reporting Chen’s working activity for the period.
He said under a conflict of interest section, Chen had checked, “not applicable.”
“I didn’t inform WFG because I didn’t consider getting scammed was considered employment,” Chen said.
After some back and forth between Marks and Chen, the judge again intervened.
Chen said he told WFG of his work for Chow in 2018.
The trial began in May and is due to wrap up testimony July 4.
A finding of B.C. Securities Act violations could result in imprisonment, probation or restitution orders, according to the BCSC.
Brent Wai Keun Chow
The BCSC said in February that Coquitlam resident Brent Wai Keun Chow was charged with fraud and theft following an investigation by the commission’s criminal investigations branch.
Chow, 45, is accused of committing three counts of fraud over $5,000 and three counts of theft over $5,000 under the Criminal Code, relating to misconduct that allegedly took place between 2017 and 2018 in Burnaby.
The BCSC said Chow was arrested in Coquitlam on Feb. 19 and released from custody on several conditions.
“He is prohibited from contacting the alleged victims, operating a private investment club, selling, promoting, buying, trading or distributing securities, or engaging in any investor relations activities, among other things,” the BCSC said.
Asked if Chow was connected to Chen, the BCSC said it was "unable to confirm or deny whether it is the same individual as the matter is before the court."
