British Columbia's securities regulator has extended a temporary order against a suburban Vancouver financial advisor and two affiliated companies, citing evidence of suspected fraud. The BC Securities Commission (BCSC) announced the extension on Thursday, following a review of evidence presented by its staff.
The order applies to Peter Cishecki, Everything Financial Group, and Everything Financial Consultants Inc. According to the BCSC, the panel found sufficient evidence to establish a prima facie case of fraud under the province's Securities Act. The regulator's statement noted that the investigation is ongoing and no formal notice of hearing has been issued yet.
The allegations center on debt securities sold by Everything Financial Consultants Inc. Investors were reportedly led to believe their investments were guaranteed, but the regulator says they were not. The BCSC also alleges that funds from later investors were used to repay earlier investors—a hallmark of a Ponzi scheme—and that investor money was commingled with the firms' operating accounts, which appear insufficient to cover outstanding obligations.
Evidence presented to the panel included 32 investment agreements between Everything Financial Group and investors, totaling $9.5 million. Each agreement promised a minimum guaranteed rate of return. Additionally, sworn statements from a former employee indicated that no underlying investments existed to support these promises.
The regulator also cited banking records showing insufficient assets to repay investors, along with four specific instances where deposits from new investors were used to make payments to earlier investors. Two complaints were filed with the BCSC's Office of the Whistleblower—one from an employee of a portfolio manager and another from a former employee of the firm.
In its decision, the panel concluded that extending the temporary order was necessary and in the public interest. The order prohibits trading or purchasing any securities of the firms and bars Cishecki and the companies from engaging in promotional activities. The restrictions remain in effect until a hearing is held and a regulatory panel issues a final decision.
Cishecki did not return a call to his office for comment. The case adds to a growing list of enforcement actions in Canada, where regulators are increasingly scrutinizing private investment offerings. Similar concerns have been raised in the U.S., where a recent SEC lawsuit alleged that a modular builder misused $65 million from 350 investors.
The BCSC's action underscores the importance of due diligence for advisors and investors alike. As a recent FINRA-RAND study found, financial literacy is key to recognizing scams, and only half of Americans can name identity fraud. This case also highlights the role of whistleblowers in uncovering alleged misconduct, a trend seen in other recent cases, such as allegations against Morgan Stanley's private bank.
The temporary order will remain in place pending a full hearing, where Cishecki and his firms will have the opportunity to respond to the allegations. The BCSC has not yet set a date for that hearing.
