BCSC panel revokes temporary order and maintains freeze order against two Burnaby residents and Burnaby company

VANCOUVER, Sept. 7, 2012 /CNW/ - A British Columbia Securities Commission panel has revoked a temporary order and maintained a freeze order against two Burnaby residents and an unregistered Burnaby company.

On April 30, 2012, the executive director issued a notice of hearing and temporary orders against Yan Zhu (also known as Rachel Zhu), Guan Qiang Zhang, and Bossteam E-Commerce Inc, alleging that they were running a Ponzi scheme.  Zhu and Zhang are Burnaby residents.

On April 30, the commission  made an order to freeze certain of the respondents' assets.

The orders were made in connection with an investigation into certain activities of Zhu, Zhang and Bossteam. BCSC staff is alleging that those activities contravened the Securities Act.

At a hearing on July 18, the executive director asked the panel to extend the temporary orders, and Zhu, Zhang and Bossteam applied to have the freeze order revoked.

The panel refused both applications.  It said its reasons will follow.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website, www.bcsc.bc.ca, by typing Yan/Rachel Zhu, Guan Qiang Zhang, Bossteam E-Commerce Inc. or 2012 BCSECCOM 349 in the search box.  Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE: British Columbia Securities Commission