VANCOUVER, Nov. 26, 2013 /CNW/ - The Executive Director of the British
Columbia Securities Commission has issued a notice of hearing alleging
that a former B.C. resident acted contrary to the public interest when
he concealed his ownership stake in a Nevada company prior to selling
The notice alleges that Alnoor Ramji, a B.C. resident, participated in a
scheme to conceal his ownership stake in Clean Power Concepts Inc. and
then sold his shares in coordination with another undisclosed ownership
group. Clean Power's shares are traded on the Over-the-Counter Bulletin
Board (OTCBB) in the United States.
BCSC staff contends that Ramji harmed the reputation and credibility of
B.C.'s securities market when he:
used nominee accounts in secrecy jurisdictions to conceal his identity
and obtain undisclosed control of 16% of the supply of Clean Power
acted as part of a group that obtained undisclosed control of 34% of the
supply of Clean Power shares;
further concealed his identity when selling his 16% ownership position
in coordination with the undisclosed ownership group; and
used layering techniques to distance himself from payments to those who
coordinated and paid for a promotional campaign for Clean Power.
The trading accounts obtained by Ramji and his nominees were in the name
of companies incorporated in Panama or Belize, and were provided by
Gibraltar Global Securities. Gibraltar is a Bahamian broker/dealer who
was permanently banned from B.C.'s capital markets in November 2012.
Between December 20, 2010 and January 20, 2011, Ramji, his nominees and
the undisclosed ownership group sold approximately 81 million shares of
Clean Power on the OTCBB through a trading account in Gibraltar's name.
The group generated approximately $21.5 million through the sale.
Ramji, directly and through his nominees, instructed Gibraltar to wire
about $8.3 million of the proceeds to bank accounts in Hong Kong,
Switzerland, Belize, and Panama.
Staff are alleging that Ramji, as an insider of Clean Power, breached
securities laws by failing to file a report disclosing his beneficial
ownership of, or control or direction over, Clean Power shares.
These allegations have not been proven. Counsel for the Executive
Director will apply to set dates for a hearing into the allegations
before a panel of commissioners on January7, 2014 at 9:00am.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the notice of hearing on our website www.bcsc.bc.ca by typing Alnoor Ramji or 2013 BCSECCOM 429 in the search box.
Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' Disciplined Persons List for information relating to persons disciplined by provincial securities
regulators, the Investment Industry Regulatory Organization of Canada
(IIROC) and the Mutual Fund Dealers Association (MFDA).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE: British Columbia Securities Commission
For further information:
For media inquiries, contact Richard Gilhooley, media relations, 604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).