The Globe and Mail reports in its Friday edition that Beleave has admitted to participating in a scam that saw it shuffle $7.5-million into the pockets of "consultants."
The Globe's Mark Rendell writes that between April and June, 2018, Beleave claimed to have raised $10-million in two private placements. In fact, it had already paid $7.5-million in "consulting fees" to individuals and firms investing in its private placements.
The "consultants" did no actual consulting work.
The details of the scheme were outlined in a settlement agreement between Beleave and the British Columbia Securities Commission.
In November, the BCSC announced that it was investigating 25 people and 26 firms -- referred to as the BridgeMark Group, for their association with BridgeMark Financial -- for allegedly participating in a "scheme that is abusive to the capital markets."
The scheme, according to the BCSC, revolved around 11 pot, cryptocurrency, mining and alternative-energy companies.
The BCSC alleges these companies "paid most of the private placement funds back and kept very little of the money raised," while members of the BridgeMark Group sold the securities in the market below private-placement acquisition cost.
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