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by Mike Caswell

The B.C. Securities Commission has begun a fraud case against Elixir Technology Inc., an entity that offered investors returns of up to 11.5 per cent per year, with the returns coming through the use of Elixir's own trading software. According to the BCSC, Elixir fraudulently raised $14.6-million (Canadian) and $1-million (U.S.) over a two-year period. It did so while concealing "catastrophic" trading losses, the BCSC says.

The allegations are contained in a notice of hearing that the BCSC released on Thursday, Nov. 27. In addition to Elixir, the notice names the company's former chief executive officer, William Peter McNarland, who is a certified financial analyst. Also named is a director of the company, Mang Hei Jaclyn Wu.

The case arises from money that Elixir raised as it promoted an in-house trading system. According to the BCSC, the company claimed that it would be able to generate annual returns of between 6 per cent and 11.5 per cent, with the money coming from trading and from leasing its trading software. It initially generated some income and had its securities listed as approved investment products.

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