BCSC panel sanctions B.C. man and company for unregistered trading activities
VANCOUVER, Sept. 5, 2018 /CNW/ - A British Columbia Securities Commission (BCSC) panel has ordered market prohibitions against Prabhjot Singh Bakshi and SBC Financial Group Inc. The panel also ordered that Bakshi and SBC disgorge to the BCSC $389,309 and that Bakshi pay an administrative penalty of $100,000.
Bakshi, a B.C. resident, was previously registered under the Securities Act in various categories, but was not registered during the relevant period. He was SBC's sole officer, director and shareholder. SBC was a B.C. company that was dissolved in November 2016. SBC was never registered under the Securities Act.
The panel found that the respondents offered two different products to investors: an interest bearing loan arrangement and a land transaction in Hawaii. Through the interest bearing loan arrangements, the respondents promised returns varying from five to 30 per cent with maturity dates varying from two months to five years. The respondents were not registered to trade securities under the Act, nor did they file a prospectus relating to the sale of those securities.
The panel found Bakshi and SBC breached the Act with respect to trading in the loans between October 2010 and September 2014 in the amount of $2,675,238; and with respect to 45 issuances of securities for $1,535,238.
Bakshi and SBC, jointly and severally, have been ordered to pay $389,309, which is the amount that Bakshi personally benefitted from those contraventions. Bakshi has also been ordered to pay an administrative penalty of $100,000.
For his misconduct, Bakshi is ordered to resign any position he holds as a director or officer of an issuer or registrant. He is prohibited for 10 years from:
- trading in or purchasing any securities or exchange contracts, except that he may trade and purchase securities or exchange contracts for his own account through a registered dealer, if he gives the registered dealer a copy of this decision;
- relying on any of the exemptions set out in the Act, the regulations or a decision;
- becoming or acting as a director or officer of any issuer or registrant;
- becoming or acting as a registrant or promoter;
- acting in a management or consultative capacity in connection with activities in the securities market; and
- engaging in investor relations activities.
SBC is prohibited for 10 years from trading in or purchasing any securities or exchange contracts; relying on any of the exemptions set out in the Act, the regulations or a decision; becoming or acting as a registrant or promoter; acting in a management or consultative capacity in connection with activities in the securities market; and engaging in investor relations activities.
You may view the decision on our website, www.bcsc.bc.ca, by typing SBC Financial Group Inc., Prabhjot Singh Bakshi or 2018 BCSECCOM 113 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
For further information: Media Contact: Andrew Poon, 604-899-6880; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]
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