A Vancouver real estate investment firm incorporated in B.C. has paid out a settlement of $100,000 to the BC Securities Commission (BCSC) in a misconduct case.
According to the BCSC, Addy Technology Corp (addy) allowed its customers to invest in properties and developments for as little as $1 through “purchasing shares or partnership units in various issuers.”
The BCSC states that the misconduct was the fact that this investment firm was trading securities without being registered. In a media release from the BCSC, the commission states addy voluntarily provided information to the BCSC, avoiding a Notice of Hearing. The BCSC states that addy has no history of of securities regulatory misconduct.
addy’s caption on its social media pages is, “We make real estate investment accessible to everyone. Start investing today with as little as $1!”
The BCSC says, “Between 2018 and 2025, addy traded in approximately $26 million of securities of various issuers, with the average amount invested being $700 per investor. Addy charged investor membership fees for early access to certain properties and additional features on its platform and charged software licensing fees to issuers and exempt market dealers (EMDs) for their use of its platform.”
During that period of time, addy was charging its members an investment fee between $25 and $500 “for early access to certain properties and additional features on addy’s online platform.”
Beginning in October 2022, Addy’s annual membership fees increased by $50.
The BCSC decision says that membership fees were not required to to actually invest on the platform. BCSC’s decision states that, “From October 2022, addy charged software licensing fees to the Issuers and exempt market dealers for their use of addy’s online platform of $100 per month or a one-time fee of up to $25,000.”
“Addy triggered the requirement to register by soliciting investments in the issuers through its online platform, emails and social media, by intermediating trades in the issuers’ securities and by receiving compensation in the form of fees for use of its online platform,” the BCSC adds.
The BCSC says that addy was looking to rely on exemptions to the registration requirements. Exemptions which were not applicable, as the BCSC points out:
- The “crowdfunding” exemption, which was not applicable because some of the issuers had principals in common with addy
- Using registered EMDs to facilitate trades, which was not applicable because addy continued to solicit prospective purchasers, contrary to the national rules regarding the use of such dealers
According to the BCSC website, it decides whether to decide on a case criminally or administratively on a case-by-case basis. It factors in variables like deceit, dishonesty, and whether or not the firm has any criminal history.
With the settlement, the Vancouver real estate investment firm waives its right to a hearing or judicial review.