Surrey man arrested for securities fraud
A Surrey man who B.C. Securities Commission investigators say used $500,000 of a client’s money to pay off debts has been arrested by Vancouver police.
Ravinderpaul (Rob) Singh Mangat, 44, was arrested Aug. 5 following an investigation by the securities commission’s criminal investigations branch. Police arrested him on a warrant issued for two counts of fraud over $5,000.
From July 2012 through October 2014, the commission alleges Mangat told a Vancouver resident he would invest their money in a “privileged investment group,” and claimed this would yield high returns; instead, he “spent the bulk of the invested funds on personal expenses and paying off debts.”
He was released last Wednesday on $10,000 cash bail with a number of conditions. A trial date has yet to be set.
Mangat has been in trouble with financial regulators before: In 2010, the Insurance Council of B.C. stripped him of his insurance licence.
The council found he took $43,500 from a client by obtaining loans against the client’s life insurance policy.
Between Aug. 19, 2009, and May 14, 2010, Mangat facilitated five loans totalling $43,500 on a life insurance policy owned by the client, who was not named.
The life insurance company issued cheques for the loan proceeds to the client, which were endorsed by “someone other than the client and deposited into the licensee’s bank account,” the council said in its decision.
The council said the client was not aware that Mangat was arranging loans on his policy, and Mangat attempted to conceal his activities by giving the client a false insurance record that did not document the policy loans.
The council concluded that Mangat “is not trustworthy and does not intend to carry on the business of insurance in good faith.”
At the time, the council said Mangat did not respond to their inquiries and that he couldn’t be located before releasing their ruling in October 2010.
Mangat worked in Metrotown at the Sun Life office, where he was also registered as a mutual fund salesman until Aug. 17, 2010, when his registration was terminated.