Originally posted on National Post | News:
VANCOUVER — A former Mission woman fraudulently raised $135 million from at least 800 investors, including more than $69 million from at least 355 B.C. investors, the B.C. Securities Commission has alleged.
In a notice of hearing Monday, BCSC enforcement staff alleged that Doris Elizabeth Nelson – who is now under house arrest in Washington state awaiting trial on criminal fraud charges – told investors their money would be used to finance her payday loan business, which operated as the Little Loan Shoppe.
She represented that the business was so profitable, she could afford to pay investors an annual interest rate of 40 to 60%.
However, the commission alleged, the business consistently lost money due to a high rate of loan defaults. To pay the promised return, she used money from later investors to repay earlier investors, thereby perpetrating a Ponzi scheme.
The scheme ran from 1998 to 2009, when…
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