VANCOUVER, July 26, 2017 /CNW/ - The Executive Director of the British Columbia Securities Commission (BCSC) has issued an amended notice of hearing alleging that Prabhjot Singh Bakshi and SBC Financial Group Inc. (SBC) illegally distributed securities and also alleging that Bakshi committed fraud.
The notice alleges SBC and Bakshi sold $3 million of SBC securities without being registered. Furthermore, prospectus exemptions were not available for $2.3 million of these sales.
The notice also alleges that Bakshi told three SBC's investors that it had purchased the rights to a land development project in Hawaii (the Hawaii Project), that SBC was advised by their lawyers that investment funds would be held in an escrow account, and that the funds would be put towards a lot in the Hawaii Project. These three investors invested $400,000 but Bakshi did not forward their money to the Hawaii Project. In fact, SBC had not purchased the rights to the Hawaii Project, and the law firm did not represent SBC or maintain an escrow account. These three investors never recovered their money.
Bakshi is a resident of British Columbia and was the sole director and officer of SBC. SBC is a company incorporated in British Columbia, but no prospectus has ever been filed in respect of the distribution of SBC securities.
You may view the notice of hearing on our website, www.bcsc.bc.ca, by typing SBC Financial Group Inc., Prabhjot Singh Bakshi or 2017 BCSECCOM 243 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: Alison Walker, 604-899-6713; Public inquiries: 604-899-6854 or 1-800-373-6393 (toll free), [email protected]