The LINK initially reported the story of “fraudster” Notary public Rashida Samji weeks ago after it was uncovered and originally reported by the Vancouver Sun’s investigative business writer David Baines. Samji was aided in this Ponzi scheme by friend Arvindbhai (Arvin) Bakorbhai Patel, who lured unsuspecting investors from his day job as a mutual fund salesman for Coast Capital Savings.
VANCOUVER – A South Asian (Ismaili) woman from Vancouver is facing allegations that she bilked investors out of $83 million in a Ponzi scheme that promised huge returns from connections to B.C. wineries.
The LINK initially reported the story of “fraudster” Notary public Rashida Samji weeks ago after it was uncovered and originally reported by the Vancouver Sun’s investigative business writer David Baines.
Samji was suspended from practice in February and is set to go before a hearing of the B.C. Securities Commission (BCSC) on May 1.
The BCSC alleges that between 2003 and the beginning of this year, Samji took in cash from 218 investors, promising guaranteed returns of between 12 and 30 per cent annually. She allegedly told the targets the money would be kept safe in a notary trust account and would be used as collateral by the Mark Anthony Group and other wineries when they sought loans in foreign countries, reported CTV news.
Instead, Samji allegedly stowed the cash in two personal accounts under the names of her two companies, and paid investors their returns with money from the new backers she brought in. The Mark Anthony Group, which owns the Mission Hill Winery, had no knowledge of the claims Samji was making, according to the BCSC.
The securities watchdog is also accusing Samji of falsifying documents and creating a false land title search to back up a fraudulent mortgage.
Samji was a notary public for 24 years before submitting her resignation in March.
Her alleged scam also spelled the end of the financial planning career of Arvindbhai (Arvin) Bakorbhai Patel, who received a lifetime market ban on Wednesday for his role in the scheme.
Patel admitted to the BCSC that during his time as a mutual fund salesman for Coast Capital Savings, he brought in about 90 clients for Samji. Those investors included his family and coworkers, who are now out a total of about $28.9 million.
Patel is now permanently banned from trading securities, acting as director for any company and engaging in any investor relations.
Both Patel and Samji are named as defendants in a proposed class action lawsuit filed in B.C. Supreme Court in March by investors seeking their money back.
Delta residents Lawrence Brian Jer and Jun Jer are named as the representative plaintiffs in the claim, and they allege that they invested $350,000 in the scheme. The Jers claim they received about $156,000 in “interest,” but the rest was lost.
The BCSC accused Patel of doing “little to no” due diligence about the quality of the investment scheme and making misrepresentations to clients about their investments.
He has received a permanent ban from trading securities in the province, or from working in the securities or investor relations field.
The BCSC said Patel voluntarily transferred his legal interest in five properties to a court-appointed receiver, but was not assessed an additional fine because he has substantial liabilities and “no reasonable prospect” of being able to pay an additional amount.
Samji and Patel are also facing lawsuits – including a class-action suit – launched by investors. The class-action suit also names Coast Capital Savings. The Society of Notaries Public of BC have not been named to the suit.
Police are also investigating and looking into criminal charges for the accused.
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