BC man faces penalties, 10-year ban for unregistered trading activities

The man, through an unregistered company, traded in loans and issued securities exceeding $4 million in total

BC man faces penalties, 10-year ban for unregistered trading activities

A panel of the British Columbia Securities Commission (BCSC) has ordered sanctions against BC resident Prabhjot Singh Bakshi and SBC Financial Group Inc, a company of which he was the sole officer, director, and shareholder.

Bakshi was previously registered in various categories under the Securities Act, but was not registered during the relevant period. SBC was a BC company that was dissolved in November 2016; it was never registered under the Securities Act.

The panel reportedly found that the respondents offered investors two different products: an interest-bearing loan arrangement and a land transaction in Hawaii.

Between October 2010 and September 2014, Bakshi and SBC reportedly traded in the loans in the amount of $2,675,238; investors were promised returns varying from 5% to 30% through interest-bearing loan arrangements, with maturity dates from two months to five years. The respondents also reportedly engaged in 45 issuances in securities for $1,535,238.

The panel found Bakshi and SBC guilty of breaching the Securities Act, as the respondents were not registered to trade securities under the act and did not file a prospectus relating to the sale of the securities. The two respondents, jointly and severally, have been ordered to pay $389,309 — the personal benefit Bakshi enjoyed from the violations — and Bakshi was also ordered to pay a $100,000 administrative penalty.

He has also been ordered to give up any position he holds as a director or officer of an issuer or registrant. He faces a 10-year prohibition from:

  • Trading in or purchasing any securities or exchange contracts, unless he does so for his own account through a registered dealer that he’s shown the BCSC decision to;
  • 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 barred for 10 years from the same activities as Bakshi.