B.C. man sells pretend $1 million stake in legendary lodge he would not personal, finds panel | Job Alls

A Vancouver Island man defrauded an investor out of $1 million by mendacity about proudly owning a legendary lodge, the BC Securities Fee says.

The BCSC panel discovered that Timothy Craig Durkin defrauded an investor by falsely representing that SHH Holdings, by means of a subsidiary, owned the entire shares within the Sooke Harbor Home lodge.

In a ruling launched Tuesday, the panel stated Durkin raised $1 million from an investor between December 2015 and March 2016, promising them a 40 p.c stake within the lodge by buying a 40 p.c stake in SHH Holdings.

A Chinese language investor trying to immigrate to Canada had already invested in a spa enterprise within the Sooke space and was contemplating increasing his funding within the area.

The investor’s firm superior $1 million from December 2015 to March 2016 to purchase the shares. The ruling states that the cash was spent and never recovered by the investor or his firm.

Based on the choice, Durkin, director of SHH Holdings, claimed that the investor was not deceived and that he didn’t intend to deceive him.

The BCSC dominated that Timothy Craig Durkin defrauded an investor out of $1 million by mendacity about possession of the legendary Sooke Harbor Home resort lodge. (Federal Court docket)

Durkin stated he made it clear to the investor that SHH Holdings nonetheless didn’t personal shares within the lodge, notably by means of the supply of an unsigned memorandum of settlement despatched to the investor’s advisers.

The BCSC panel concluded that SHH Holdings and Durkin made three false statements concerning the possession of the lodge.

SHH Holdings “owns one hundred pc of the excellent and issued capital inventory of Sooke Harbor Home Inc., the working firm,” in accordance with a 2015 electronic mail despatched to the investor’s lawyer.

When requested if SHH Holdings was the lodge’s sole shareholder or whether or not it might purchase the shares later, Durkin advised the investor’s lawyer in an electronic mail in 2015 that the shares have been “already purchased.”

“This alternate of questions and solutions may be very clear,” the ruling stated. “This contradicts all of Durkin’s proof and representations that he believed the investor understood that Holdings didn’t personal shares within the lodge.”

The panel instructed the events to submit a presentation on sanctions.

A authorized battle for management of the lodge

Durkin battled for years with lodge founders Sinclair and Frederique Philip for management of the Sooke Harbor Home, a legendary vacationer vacation spot that hosted Hollywood stars and royalty.

In 2020, Justice Jaswinder Basran awarded Philips $4 million in a settlement with Durkin and a associate in a failed 2014 lodge share deal.

Philips entered right into a inventory buy settlement in 2014 underneath which Durkin and a associate bought their curiosity within the lodge for $6 million.

Philips believed they’d obtain $2 million, and in accordance with the ruling, Durkin satisfied them that SHH Holdings had the sources to pay the prevailing mortgage and curiosity owed to the Canadian Enterprise Improvement Financial institution.

In truth, Basran discovered that SHH Holdings by no means raised greater than $54,000, regardless of guarantees of a “syndicate” or “possession” of traders from Tehran to Zurich.

“[Durkin’s] a view of the reality is all that may serve his pursuits in the intervening time. He’s fully free from the same old norms of morality, honesty and decency,” Basran wrote.

“He is a garden-variety kind who preys on folks he thinks are weaker than him and susceptible to his errors and manipulation.”

In 2020, North Vancouver-based IAG Enterprises bought the land, the Sooke Harbor Home constructing and associated belongings for $5.62 million in a court-ordered foreclosures sale.

The lodge is closed for renovations and no reopening date has been set.

The lodge was put up on the market final 12 months for $13.3 million.

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