Canada Regulator Targets Elixir Technology Over Alleged $16 Million Fraud

Canada’s BC Securities Commission (BCSC) has accused Elixir Technology Inc., formerly known as Elixir Income Inc., of orchestrating an alleged CA$16 million fraud involving more than 100 investors. The company presented itself as a profitable financial technology firm developing proprietary trading software and leasing it to generate revenue from securities trading. According to the BCSC, however, Elixir’s real financial condition was far fragileer than investors were led to believe, particularly during the ahead months of 2020.

Between July 2020 and October 2022, Elixir raised approximately CA$14.6 million and US$1 million from 113 by tradeing securities that were typically marketed as interest-bearing instruments or yielding monthly dividends of between 6 and 11.5 per cent annually. Regulators allege these offers were made while Elixir lacked a genuinely viable leasing business and was already under severe financial strain. Investors, the BCSC says, were not told that the company’s revenue model was faltering and that it was facing mounting losses.

Elixir reportedly suffered “catastrophic” trading losses in the first quarter of 2020, with negative revenue of $5.5 million in the first half of that year due to investment losses. The firm allegedly did not generate sufficient income to fund the promised distributions and, at one point, owed nahead twice as much to investors as it held in assets. By late 2022, Elixir had deferred all redemptions and distributions, suspending payments in November and December respectively. The BCSC alleges that by failing to disclose this reality, Elixir committed fraud under the Securities Act.

Takeaway

How Do the Allegations Involve Elixir’s Directors and Distribution Practices?

The BCSC’s notice names Elixir’s founding director, former B.C. resident William Peter McNarland, and current B.C. resident Mang Hei Jaclyn Wu, also a director, as key figures in the alleged misconduct. McNarland, who now lives in Alberta and has previously been registered in both B.C. and Alberta to work in the investment industry, is alleged to have controlled Elixir and to have authorized, permitted, or acquiesced in the company’s fraudulent conduct. The regulator argues that his role at the helm of the firm makes him responsible for how investors were solicited and informed.

Wu, who is currently registered in B.C. and Ontario as a dealing representative for exempt market securities and licensed with the Insurance Council of BC, is alleged to have actively promoted Elixir’s securities. The BCSC says she recommended the products to clients, referred investors to Elixir, and received commissions for those referrals. Crucially, regulators allege she raised money for Elixir while aware of the company’s poor financial condition and nonetheless failed to disclose those risks to investors, thereby contributing to the alleged fraud.

Beyond the fraud allegations, the BCSC also claims that 13 investors who purchased CA$2.6 million in Elixir securities between February 2020 and October 2022 did not qualify for any available prospectus exemption. Because Elixir did not file a prospectus, the regulator alleges these distributions were illegal, even if they were not independently fraudulent. As directors and officers, McNarland and Wu are alleged to have authorized or acquiesced in this illegal distribution. In addition, Wu is accused of making false or misleading statements under oath during interviews with BCSC investigators in November 2024, when she reportedly claimed to be a close personal friend of three investors to justify a “family, friends and business associates” exemption—a statement the BCSC alleges was untrue.

Takeaway

What Comes Next for the Case and What Are the Broader Implications?

The BCSC has emphasized that its allegations against Elixir, McNarland, and Wu have not yet been proven. The respondents, or their legal counsel, are required to appear before the Commission on December 16, 2025, if they wish to be heard before a formal hearing is scheduled. That appearance will determine the next procedural steps, including whether the matter moves to a contested hearing where evidence and witness testimony will be examined in detail.

If the Commission ultimately upholds the allegations, potential outcomes could include trading bans, administrative penalties, disgorgement orders, and strict conditions on any by the respondents. For investors, the case may also intersect with civil avenues to viewk redress, though recovery prospects often depend on whether assets remain and how they are allocated. The fact that Elixir deferred all redemptions and distributions suggests that many investors may still be facing substantial losses.

More broadly, the Elixir case serves as another warning to investors and advisors engaging with high-yield, tech-themed securities that are marketed through exempt channels. While exempt market offerings can provide access to innovative products, they also carry heightened risk where transparency, audited financials, and independent oversight are limited. For regulators, the file underscores the ongoing focus on disclosure quality, exemption misuse, and the conduct of registered professionals in the exempt market space—areas that will remain central as fintech and continue to proliferate.