A former Vancouver-based notary public allegedly ran a Ponzi scheme that raised $83-million from 218 investors who believed their money was being used to finance deals for an Okanagan winery.
The B.C. Securities Commission is alleging Rashida Samji promised returns of 12 to 30 per cent a year if investors placed their money in her notary trust account, to be used as collateral for investments by Mission Hill Winery, as well as other unnamed wineries.
The problem was, they’re alleging, it was all fiction.
“Mark Anthony (the company that owns Mission Hill) had no knowledge that she was claiming to have this business relationship with them,” reads a document signed by Paul Borque, executive director of the BCSC.
Smaji was allegedly able to perpetuate the ruse, by paying out early investors with the money she gained from subsequent ones.
“The money investors received back from Samji did not come from wineries. Instead, Samji paid existing investors money from new investors under the guise of investment fees.”
Since about 2003, there have been approximately $63 million in payments from Samji to investors.
The Society of Notaries Public of British Columbia suspended Samji from practicing on Feb. 7. On Feb. 8, they obtained a court order appointing a custodian over Samji’s practice. Samji subsequently submitted her resignation on March 6.
Samji is the sole director and officer of the two corporate respondents, Notary Corp. and Samji & Assoc., who are both BC companies.
Her hearing before the commission will be held May. 1.
