A British Columbia Securities Commission (BCSC) panel has found that Lynne Rae Nickford (a.k.a. Lynne Rae Zlotnik) perpetrated fraud on 13 investors.
The BSCC panel found that in 2009 and 2010, Nickford convinced 13 investors to loan money to or invest in Lynne Zlotnik Wealth Management (LZWM) and told the investors their funds would be used for LZWM's business operations and growth. “In most instances, Nickford offered investors rates of return ranging generally from 12 to 16 per cent, and issued either promissory notes or "private investment" documents,” stated the BCSC in a statement issued Aug. 21.
Spent over $318,000 of investors' money
The panel found that Nickford spent over $318,000 of the investors' money on personal expenses unrelated to her business.
In its decision, the panel stated, "The investors' funds were put at risk when all the funds were not used for the purposes of the respondent's business, LZWM, as intended. With the subsequent bankruptcy of the respondent and her business, the investors' funds were lost."
Not registered under the Securities Act
Nickford was previously registered as a scholarship fund salesperson (1991 to 1993), and as a mutual fund salesperson from 1998 to 2008. But she was not registered under the Securities Act during the relevant period. She was the sole proprietor of LZWM, and licensed as a life and accident and sickness insurance agent during the relevant period.