TORONTO, July 19, 2012 /CNW/ - On July 18, 2012, the Ontario Securities
Commission (OSC) laid quasi-criminal charges against Berik
Yessirkegenov and North American Business Equipment Corporation (NABEC)
for perpetrating a fraud contrary to section 126.1 of the Securities Act (Ontario).
During the period of April 1, 2009 to April 12, 2010, Mr. Yessirkegenov
misrepresented to a pension fund that Mr. Yessirkegenov's firm, NABEC,
was licensed to trade in securities by the "Securities and Exchange
Commission of the Canada". The pension fund was located in the
Republic of Kazakhstan.
The pension fund entered into an investment services agreement with
NABEC dated May 18, 2009. As a result, the pension fund forwarded
approximately U.S. $8 million to NABEC on the belief that the monies
would be invested in financial instruments, including equities, as
directed by the pension fund. NABEC produced false trading
confirmations and false monthly account statements in order to create
the illusion that the funds were invested as directed and concealed the
actual trading losses and payments made from NABEC's trading accounts.
A first appearance for the defendants is scheduled to take place on
Tuesday, August 28, 2012 at 10:30 a.m. in Courtroom 205 at the
Newmarket Courthouse, 50 Eagle Street, Newmarket.
Under section 122 of the Securities Act, the OSC has the authority to
lay quasi-criminal charges against individuals or companies in the
Ontario Court of Justice for alleged violations of the Act. The maximum
penalty available upon conviction is a fine of not more than $5 million
or imprisonment for a term of not more than five years less a day, or
both. The OSC pursues cases in court in order to seek sanctions and
penalties that send a strong message of deterrence and denunciation to
those who try to exploit investors.
The mandate of the OSC is to provide protection to investors from
unfair, improper or fraudulent practices and to foster fair and
efficient capital markets and confidence in capital markets. Investors
are urged to check the registration of any person or company offering
an investment opportunity and to review the OSC's investor materials
available at www.osc.gov.on.ca.
SOURCE Ontario Securities Commission
For further information:
For Media Inquiries:
Manager, Public Affairs
Media Relations Specialist
Follow us on Twitter: OSC_News
For Investor Inquiries:
OSC Contact Centre
1-877-785-1555 (Toll Free)