Founder and owner of scholarship plan dealer also banned for life by the OSC
Issam El-Bouji, founder and owner of Global RESP Corp, has been banned from the capital markets for life by the Ontario Securities Commission (OSC).
Its related investment fund manager Global Growth Assets Inc, was also permanently banned after an OSC panel approved a joint settlement agreement for continued non-compliance with Ontario securities law. The case dates back to 2014, with these specific proceedings having taken two years.
Bouji has also been ordered to pay $190,000 toward OSC costs – which he has already paid – while Global RESP and GGAI will compensate underpaid eligible beneficiaries who have not received a full reimbursement of enrolment fees. This totals at least $900,000. The agreement states that CGAI is expected “to make all reasonable efforts to do so within nine months”. It also details how Bouji is permanently banned from acting as a registrant, an officer and director of any registrant or reporting issuer in Ontario. Global RESP will surrender its registration in the province.
In a press release, the OSC said: “Significant terms and conditions are placed on GGAI’s registration to remedy past violations, compensate plan beneficiaries, and ensure GGAI’s independence from the Bouji family. GGAI is permanently banned from acting as an investment fund manager for any funds other than the funds it currently manages, which includes the Global Plans. It is not permitted to enrol any new subscribers in the plans.”
The Commission said numerous compliance reviews uncovered significant deficiencies including: conflicts of interest failures, not reimbursing sales charges known as enrolment fees per prospectus commitment, and failing to meet its Know Your Client (KYC) and suitability obligations.
Global and Bouji demonstrated “continued non-compliance” with Ontario securities law, and have been subject to a variety of past regulatory actions.
“Persistent and serious regulatory violations put investors at risk,” said Jeff Kehoe, director of enforcement at the OSC. “This settlement holds Mr. Bouji and the firms accountable for their misconduct and supports parents who save for their children’s education.”
Subscribers who received a commitment to have their enrolment fees reimbursed in prospectuses dated 2002-2004 will be reimbursed by Global. The OSC added that GGAI’s continued status as a registrant preserves the assets contained in the Global plan and ensures the least amount of disruption to subscribers and beneficiaries of the plan.
