The commission alleges Tin Chao Alan Lau, a founder and the chair of the board of directors of a non-profit seniors’ centre based in Richmond called Canadian Low Income Seniors Affordable Housing Society, persuaded a volunteer at the seniors’ centre to invest $50,000 in the centre through him.
According to a press release from the commission, Lau allegedly told the volunteer that if he invested $50,000 he would receive five per cent annual interest, payable monthly.
The investor allegedly agreed to the investment based on Lau’s assurances that he would earn a higher interest rate with the investment over the bank, and that the investor could easily withdraw the money.
The commission also alleges Lau instructed the investor to purchase a $50,000 bank draft payable to Lau, which he deposited into his personal bank account.
Lau then allegedly spent the money on personal expenses such as MasterCard payments, cash withdrawals, and cheque payments.
When the investor requested the investment funds returned, commission staff maintain that Lau said he used the $50,000 to purchase groceries to sell in the seniors’ centre and could not repay the funds until the groceries sold.
A hearing into the matter is scheduled for Sept. 8.
