BCSC settles with Surrey investment management firm that failed to carry out its duties

VANCOUVER, BC, March 7, 2022 /CNW/ - Three Lower Mainland men connected to a former Surrey investment firm that failed to meet the standard of care for an investment manager must pay a combined $210,000.

As part of the settlement agreement with the British Columbia Securities Commission (BCSC), Gregory Paul James Cameron, Wah Bo Chew, Matthew Evans Cameron and Chartwell Asset Management Inc. are prohibited from participating in various market activities.

Chartwell, which was also registered as a portfolio manager and an exempt market dealer, managed several funds. One of them, the Magna High Income Fund, loaned a large proportion of its assets – US$5 million – to Health Capital Receivables Funding Special Purpose Corporation I (Health Capital), by 2011.

Health Capital stopped making timely interest payments and stopped providing reporting documents. Chartwell suspended client redemptions of the income fund in 2017 after Health Capital defaulted on the loan agreement.

In the settlement agreement with the BCSC, Chartwell admitted that it did not have sufficient information about Health Capital to support its calculation of the value of the fund, nor did it re-evaluate the fund's valuation in light of multiple risk indicators.

By doing so, Chartwell failed in its duty as an investment fund manager to exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in the circumstances.

In addition, Gregory Cameron, Chew and Matthew Cameron admitted that they authorized, permitted or acquiesced in Chartwell's contraventions and therefore violated the same provisions as Chartwell. Gregory Cameron of Surrey was the company's president, chief executive officer and a director, Chew of Burnaby was a director and advising representative, and Matthew Cameron of Coquitlam was the vice president, an advising representative and chief compliance officer.

As a result of the misconduct, Gregory Cameron must pay $100,000, Chew must pay $70,000 and Matthew Cameron must pay $40,000 to the BCSC.

The three men are also subject to the following sanctions: 

• Gregory Cameron is prohibited for 15 years from becoming or acting as a director or officer of any reporting issuer or registrant and from becoming or acting as a registrant or promoter
• Chew is prohibited for 10 years from becoming or acting as a director or officer of any reporting issuer or registrant
• Matthew Cameron is prohibited for 4 years from becoming or acting as a chief compliance officer

Chew and Matthew Cameron will also be subject to supervision during any periods for which they are registered under the Act. This registration condition will apply until they have been registered cumulatively for a total of four or three years respectively.

Chartwell is also permanently prohibited from purchasing any securities, becoming or acting as a registrant or promoter and engaging in promotional activities.

Neither Chartwell, Gregory Cameron nor Matthew Cameron have a history of securities misconduct, although Chew had previously entered into a settlement agreement with the BCSC in 1997.

The BCSC had issued a Notice of Hearing against Chartwell, Gregory Cameron, Chew and Matthew Cameron in December 2020, but they settled before the hearing began.

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission

Media Contact: Elise Palmer, 604-899-6830; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]