A court has ruled that a Richmond-based financial strategist did not obstruct justice when he coached an investor to lie to an industry watchdog investigator.
The BC Court of Appeal ruled in favour of Hunter Wei-Shun Wang, a former employee of FS Financial Strategies Inc.
Wang had appealed a decision by the B.C. Securities Commission (BCSC) which had found that he and an associate at the firm were involved in coaching the investor, including role-playing in which Wang pretended to be the investigator taking the investor’s call.
Wang, who was ordered by the BCSC to pay $30,000 and was suspended from some investment market participation for two years, did not contest the panel’s factual findings.
Instead, he appealed the panel’s decision on two legal grounds, one being the Securities Act’s definition of obstruction of justice at the time in 2014 pertains only to concealing or withholding evidence in the context of a formal BCSC investigation.
Wang further argued that the Act’s obstruction of justice provision in 2014 pertained to concealing or withholding evidence only if it happens before an investigation has begun.
Two of the three appeal court justices agreed with that argument, based on the law’s language in 2014.
The obstruction of justice provision of the Act was amended in 2020 to remove the word “before.”
In upholding Wang’s appeal, the court sent the matter back to the BCSC, so that a panel can determine if Wang engaged in conduct that is abusive to capital markets.
However, he asked for his money back a few days later, saying he regretted making the investment. While waiting for a response, the investor’s mother complained to the BCSC about the investment.
