VANCOUVER, May 27, 2011 /CNW/ - The British Columbia Securities
Commission has settled with a man who admitted he lied about his
involvement with a U.S. over-the-counter issuer.
In a settlement agreement, Karnjit Singh Bahd admitted that he lied in
two separate interviews with investigators. The interviews were a part
of an ongoing BCSC investigation into suspicious trading in the shares
of Sungro Minerals Inc., a B.C. reporting issuer quoted on the U.S.
Bahd told BCSC investigators, among other things, that he did not give
nine seed shareholders money to pay for their shares, after he
persuaded them to invest in Sungro Minerals. Bahd held Sungro Minerals
shares himself, which he sold at a profit. Under questioning, Bahd
said nobody told him to sell the shares and that he did not inform
anyone about it.
Bahd has admitted that these statements were false. He reimbursed the
seed shareholders for the purchase price of their shares. He also
admits that he sold his shares, at specified prices on specific dates
between June 23, 2009 and July 6, 2009, at the direction of a friend
connected to Sungro Minerals.
Bahd will pay the BCSC $75,000 and is prohibited, with limited
exceptions, from purchasing or trading securities for 25 years. He is
also prohibited, for the same period of time, from becoming or acting
as an officer or a director of any issuer, becoming or acting as a
promoter, acting in a management or consultative capacity in connection
with the securities market, and engaging in investor relations
The executive director previously issued orders against five of the seed
shareholders, who admitted in a settlement agreement that they had made
false or misleading statements to BCSC investigators about their
purchase of Sungro Minerals shares (see 2010 BCSECCOM 620).
The executive director will provide a commission panel with an update on
the Sungro Minerals investigation on June 2, 2011 at 8:30 a.m. A
temporary order, originally issued by the executive director and
confirmed by a commission panel, prohibits trading in Sungro Minerals
until a hearing is held and a decision is rendered.
The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the
province. You may view the settlement agreement on our website www.bcsc.bc.ca by typing Karnjit Singh Bahd or 2011 BCSECCOM 243 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).
If you have questions, contact Richard Gilhooley, media relations,
604-899-6713. For public inquiries, call 604 899 6854 or 1 800 373 6393 (toll free).
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information:
Contact: Richard Gilhooley