OSC bans man for “predatory” behavior

Share this article and your comments with peers on social media Compensation funds available for Phoenix group victims According to the decision released Monday, OSC staff sought a $150,000 fine and $486,000 in disgorgement from Ahluwalia, along with trading, registration, and director & officer bans. It did not seek costs, noting that he co-operated with the regulator and avoided a costly hearing. Nevertheless, OSC staff said, “The respondent’s behaviour was predatory in the sense that he purchased the Electrolinks shares for one cent and then sold them to investors at 65 to 85 times that amount, and kept more than half of the proceeds. No disclosure was made to investors. The investors were told that Electrolinks would go public and that investors could expect a substantial return. Both of those statements were made solely to entice investors to purchase Electrolinks shares… this is the very type of behaviour that the commission seeks to eliminate from the capital markets.” The decision indicates that Ahluwalia argues that the proposed sanctions are too severe and will cause him financial hardship, but that he did not suggest alternative sanctions. The OSC sided with staff, ruling, ” In my view, the respondent’s behaviour was predatory; he obtained a large amount of money from investors based on misleading statements to them. In doing so, he breached key provisions of the Act. That is unacceptable conduct.” IIROC reaches settlement with three former All Group reps serezniy/123RF Related news Former Alberta planner fined, banned for illegal distribution scheme The Ontario Securities Commission (OSC) has ordered almost $500,000 in disgorgement, a $150,000 fine, and a permanent ban against a man who admitted trading without registration. The OSC handed down sanctions against Mohinder Ahluwalia, who, based on an agreed statement of facts, admitted that he contravened Ontario securities law by trading without registration and selling shares in a firm (Electrolinks Corp.) that constituted a distribution without a prospectus or an exemption. BCSC sanctions founders, companies in failed insurance venture James Langton Keywords Illegal distributionsCompanies Ontario Securities Commission Facebook LinkedIn Twitter read more