In Surrey, British Columbia, a man is alleged to have used money obtained from investors to fund a significant gambling spree.
According to the B.C. Securities Commission (BCSC) in Canada, David Lawrence Pazurik accrued CAD 200,460 ($145,600) from 14 investors as the sole operator behind Pazman Promotions, an entity said to be “in the business of purchasing and customizing branded merchandise for other businesses.”
At present, none of the allegations against Pazurik have been proven, with the commission set to hold a hearing on the matter.
According to the BCSC, the alleged fraudulent activity is said to have taken place between January 2021 and May 2022, with Pazurik using the proceeds for gambling and other personal spending.
A news release from the commission detailed how he burned through almost 75% of the funds raised, around $146,000, with some payments also made to associates of Pazurik.
As a result, the BCSC alleges that he committed a fraud breach under the Province’s Securities Act.
BCSC to schedule a hearing on the alleged breach of Securities Act
The premise of the scheme was an investment in a profit-sharing arrangement, through support for sales contracts in Pazman Promotions’ business activity. Clients were advised they would be in line for a “reimbursement of their funds plus a specific amount of profits in a short period of time.”
The communication from the B.C. authority detailed that this did not materialize, with no returns paid to investors, as pledged.
Pazurik or his representatives have now been called to make a submission to the B.C. Securities Commission on November 18, before it schedules a hearing to rule on the situation.
As an independent provincial government body, the remit of the BCSC is to set the rules, provide oversight, and carry out enforcement on the investment market, to ensure it is “honest, fair, competitive and dynamic.”
Image credit: IJF
