We learned that my (Sue's) brother Ken McMordie aka Byrun Fox passed on Monday. Ken was living in Cambodia when he succumbed to complications form the Coronavirus pandemic. Ken lived a storied life beginning with a spot on a local tv show and a career that included a variety of positions from sales and private investigations to gemology. He was inventive, creative, with a unique perspective on life.
Ken touched many lives and left an indelible impact on those who knew him. It is with much sadness that he left in such a terrible time. he will be missed.

Kenneth Robert McMordie (McMordie), also known as Byrun Fox, is a British Columbia resident. Starting in February 2006, investors were instructed to purchase Loan Contracts through “private spiritual common law trusts” created by the Respondents. McMordie gave presentations at investor meetings and was responsible for facilitating investments in Loan Contracts through the purported spiritual trust arrangements. McMordie declared bankruptcy on January 11, 2006. He was found guilty of uttering forged documents, contrary to section 368(1) of the Criminal Code, on January 30, 2007.

More details here:

Spoiler:

Illegal Distribution
12. None of the Parties is registered in any capacity under the Act. No prospectus has ever been filed in British Columbia respecting the distribution of either the Manna or Legacy securities.

13. All of the Respondents have been directly or indirectly involved in soliciting, facilitating or negotiating the sale of Manna or Legacy securities, contrary to sections 34(1) and 61 of the Act.

Misrepresentations
14. McLeod, Vaughan, McMordie and Rosiek, in promoting the Loan Contracts, have been representing to investors and potential investors,among other things, that:

(a) Loan Contracts, as a result of being made through spiritual trusts, would be shielded from certain tax and securities laws;

(b) investors’ funds would be placed with experienced traders, who would conduct trades in companies listed on the Standard & Poor’s“e-mini trading division”, commodities and foreign currency;

(c) Manna had “an annualized trading history of profit returns not less than 20% per month (240%) per year”; and

(d) as a result of these trading profits, holders of Loan Contracts would receive high rates of return in the form of interest payments, the historical of which had been 125.22%.

15. The above statements are all false:

a) it is not possible to shield securities transactions from the application of securities laws through the use of spiritual trusts;

b) there is no evidence that any of the investor funds were placed with traders, experienced or otherwise. Instead, it appears that the bulk of investors’ funds were directed to the control of the individual Respondents; and

c) there is no evidence that the Loan Contracts have earned any interest. Instead, “interest” payments have been paid out of the principal amounts of the Loan Contracts.

16. In making these and other false statements, the Respondents have been making misrepresentations contrary to section 50(1)(d) of the Act.

Fraud
17. The distribution of the Loan Contracts by the Respondents is a Ponzi scheme. By obtaining investors’ funds under false pretenses, misdirecting investors’ funds and making the above false statements to investors and potential investors, the Respondents are perpetrating a fraud against investors, contrary to sections 57 and 57.1 of the Act.

https://www.bcsc.bc.ca/enforcement/admi ... nne-sharon