Local Businessman Feels Investment Loss Amid Fraud Investigation

In Arva, Ont., businessman Don Vanhevel is losing hope of ever seeing back the nearly $450,000 he put into a biotech company based in B. C. through share purchases that began in 2013.

Vanhevel now sees it as a bad investment, which started after he went to an investors’ meeting at the home of Thorndale, Ont., businessman Robert Freeman.

The same Robert Freeman is currently facing allegations for supposedly violating Ontario Securities Commission (OSC) regulations.

“I think it’s gone,” said Vanhevel, 63, regarding his investment. “We’ve lost all this money, and that’s going to really affect our retirement.”

Vanhevel reached out after reading an exclusive report on April 7 about the OSC charges against Freeman, who had become wealthy from selling his company, London Telecom, back in 1999.

In a non-criminal case moving towards an administrative tribunal, the OSC claims Freeman violated securities rules by selling $4.8 million worth of shares in Qu Biologics Inc. from 2009 to 2024 to 190 investors.

Back in 2013 Vanhevel was invited to a meeting at Freeman’s mansion near Thorndale where he learned about investing in Qu Biologics.

At that meeting, Freeman told around twelve potential investors that the biotech firm had developed medicines during clinical trials that saved his life after being diagnosed with cancer. He claimed he had invested heavily in the company himself and believed it could lead to huge profits, Vanhevel recounted.

“He said we wouldn’t know what to do with all the money we were going to make,” said Vanhevel. “It was going to go up that much. We were all going to be rich.”

Vanhevel noted they were informed the minimum investment was $150,000 and instructed not to discuss anything shared during the meeting.

A copy of the certificate issued by Qu Biologics Inc. to Don Vanhevel for his original investment in the company. He bought 59,172 shares at $3.38 each. (Andrew Lupton/)

In June of 2014, Vanhevel made an initial investment exceeding $200,000 by purchasing 59,172 shares in Qu Biologics at a price of $3.38 each through his company Fra-Laine Elevators.

Over time, Vanhevel bought additional shares and received certificates issued by the company along with regular updates regarding Qu’s progress in various clinical trials.

There were also consistent updates from Freeman who insisted that although the company had never been publicly traded, it was on its way to success.

“He kept saying ‘It’s just a matter of time; you’ve got to hang in there a bit longer. It’s going to be payday,'” said Vanhevel.

Latter Share Purchases Made Through Freeman

This year in 2023, Vanhevel purchased more shares but did so differently this time-through Freeman instead of directly from Qu Biologics. His share purchases amounted to three separate transactions totaling $20,000 according to documents provided.

The method by which Freeman sold those shares is central to the OSC’s case against him. The OSC argues that Freeman wasn’t authorized to sell either his own or others’ shares without consent from Qu Biologics’ board. They allege he also failed to clarify for buyers that some transactions involved selling his own shares and that proceeds ended up benefiting companies owned by him while misrepresenting himself as merely acting as an intermediary holding others’ shares in trust.

“[Freeman] never once told us he was selling his own shares,” said Vanhevel.

Vanhevel’s confidence dwindled last August when Dr. Hal Gunn-the company’s founder-shared what he termed “challenging news” with investors via group email.

The email indicated a clinical study revealed Qu’s treatments did not enhance immune responses within a test group of patients leading their board of directors deciding on laying off everyone on staff rather than incurring debt which would complicate future investments further down the line.

The letter shared also stated Gunn would personally lend up to $640,000 so they could keep operating while mentioning another clinical trial focused on colon cancer would need postponement too according this email correspondence.

Charges Against Freeman

CBC reports earlier this month detailing OSC’s allegations against Freeman further diminished any remaining belief that Vanhevel might have held concerning securing his investment funds’ safety.

Specially disconcerting for him was learning about how freely Freeman sold off his own stock holdings.

“That would’ve raised red flags , and I wouldn’t have put another dollar into it,” expressed concerned investor Mr. Van Heavel.
Robert Freeman is known as founder behind London Telecom-a venture acquired back then bringing over$76 million into fruition-now grappling under scrutiny amidst fraud accusations revolving around BC-based entity called ‘Qu Biologics Incorporated’.

Lack Of Progress In Trials

Mr. Freeman asserts enduring faith surrounding Qus technologies whilst concurrently exhibiting concerns around stagnation seen throughout ongoing clinical experimentation phase. Mr. Freeman confesses contributing upwards more than five million dollars alongside two million secured through loans taken out prior efforts vested originally during initial encounters.

‘I’m worried about everyone’s investments,’ continued Mr. Freeman.’I want everyone here doing well. I fully believe these treatments can work.’

On question whether responsible disclosure occurred when trading out personal stocks including acting solely mediating roles between participants conflicting interests involved:”I didn’t lie.” insisted justifying. “I indicated existence alternative larger stakeholders intending divest their stakes.”

When queried motivation behind unloading part ownership despite strong beliefs underlying organization initiatives : Mr. Freeman explained how past quantities acquired exceeded requirements ultimately necessitating liquidation offsetting debts accrued related borrowings facilitated early participation rounded operations confirmed through registration within Plover Farms title holdings registered.

The OSC possesses authority intervening appropriate measures returning amounts improperly allocated harming shareholders should Capital Markets Tribunal conclude wrongdoing transpired.

Yet despite ongoing processes underway investigating overall situation unfolding concerning their finances -Mr. Van Heavel does express skepticism perceiving retrievals attainable neither stemming from outcomes evolving either way nor anticipated reselling mere fractions remaining possessive assets outrightly stating..” I’m not holding my breath,” reiterating stark reality asking “we’ll be fortunate if pennies rewarded every dollar contributed.”

Scheduled hearings will commence following tribunal management sessions come June involving foundational aspects leading forward engagement along next steps ensuing deliberations.

Listen | Listen here concerning Andrew Lupton presenting story material :

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