The British Columbia Securities Commission (BCSC) has imposed “financial sanctions and market bans” against companies controlled by a former North Delta pastor, his son and a White Rock resident.
They have been found to have committed fraud in a real estate investment scheme, according to the BCSC.
Surrey residents Alan Braun and Jerry Braun, and White Rock’s Steven Maxwell (also known as Steven Fassman) were found to have taken $450,000 from two investors in three separate transactions.
According to the findings of a BCSC panel, the trio led investors to believe they would receive high returns in a short period by putting money into Edmonton real estate. Instead, the Brauns and Maxwell used the money for “other purposes, including their own personal living expenses.”
In a Feb. 19 press release, the securities panel said the misconduct of the three men “was exacerbated by what can only be described as the predatory nature” of the investment deals. One of the investors was described as “vulnerable,” and the panel noted that the Brauns “preyed upon a shared spirituality with the investor.”
Alan Braun previously served as a senior pastor at Royal Heights Baptist Church in North Delta.
The BSCS will require Maxwell to pay $120,500, and Alan Braun to pay $323,500, with Jerry Braun and Braun Developments liable for about $157,000 of the order made against Alan Braun.
On top of those requirements, the BSCS panel imposed nearly $1 million of administrative penalties for the men’s misconduct: $450,000 against Alan Braun, $300,000 against Maxwell and $200,000 against Jerry Braun.
All three men are also subject to bans on certain market activities.
Alan Braun and Maxwell are permanently banned from working as a company’s director or officer, registrant or promoter, they are not allowed to serve in management or consultative positions in the securities market, or engage in investor relations, the trading of buying securities or exchange contracts.
Jerry Braun is banned from the same activities for at least 15 years.