RED BOOZE NOSE DEER, You seem to be the ring leader of the Rat Pack here with a brain and have some comon sense so, I ask You if you could be so kind and explain this to all of us please.
1) is affinor free from the BCSC Investigation ?
2) is NickY B also free from it ?
BCSC pares back case against Jackson et al.
BC Securities Commission (C:*BCSC)
Thursday April 29 2021 - Street Wire
by Mike Caswell
The B.C. Securities Commission has scaled back its proceedings against Anthony Jackson and others over improper share issuances carried out in several Canadian Securities Exchange companies in 2018, with the matter now limited to Mr. Jackson and three others. In an amended hearing notice issued on Thursday, April 29, the BCSC claims that the group improperly obtained millions of tradable shares. The scheme amounted to conduct that was contrary to the public interest, the BCSC says.
Besides Mr. Jackson, those named in Thursday's amended hearing notice include Justin Liu, Robert John Lawrence and Cameron Robert Paddock. Also named are several private entities associated with the four men. The amendment leaves the case with 10 respondents, down from the 49 named when the BCSC filed the original hearing notice on Nov. 26, 2018.
The allegations in the amended notice remain largely unchanged, with the BCSC accusing the men of participating in a six-month scheme involving private placements in a group of CSE listings. The scheme, as set out by the BCSC, included the issuance of $50.8-million worth of shares between February and August, 2018. Consultants, who did little or no work, acquired the shares in private placements.
On paper, it appeared that the companies were raising significant amounts of money, but in reality they realized almost nothing, the BCSC says. According to the hearing notice, the companies paid out large sums to the consultants in prepaid fees around the same time as the private placements. Essentially, the scheme resulted in the consultants receiving blocks of shares for doing little or no work, the BCSC claims. The consultants then sold those shares on the market, the BCSC says.
On top of those accusations, the BCSC has added an allegation of insider trading to the case. The regulator claims that the men were aware of material information with respect to the private placements through which they had obtained the stock. In particular, they knew that the companies retained little money from those private placements, the BCSC says. This amounted to an undisclosed material change. The BCSC also claims that Mr. Liu beneficially controlled more than 10 per cent of one of the companies, but did not file any insider trading reports.
In issuing the amended hearing notice, the BCSC says that it intends to discontinue the case against the others that it originally named in the case. (Somewhat confusingly, the regulator also says that it may still recommence proceedings against those same others.)
None of the four remaining respondents has any regulatory history, although Mr. Liu has some controversial connections. He shares an address with May Joan Liu, a controversial promoter who the Vancouver Stock Exchange effectively banned in the 1990s. Mr. Liu also had links to Bravo Enterprises Ltd., a company that the U.S. Securities and Exchange Commission halted in 2014, citing a need to protect investors. The SEC said that the company was one of several that could be exploiting a then-recent Ebola outbreak.
Interestingly, one of those no longer being pursued is Aly Babu Mawji, a Coquitlam man who spent time in jail in Germany. Prosecutors there said that he was part of the manipulation of a company called De Beira Goldfields Inc. in 2006. The stock was listed in Frankfurt and heavily promoted in Germany, and at one time had a $600-million (U.S.) market capitalization. Authorities in Austria arrested Mr. Mawji for the scheme in 2011, and a judge in Stuttgart later convicted him and two others. The BCSC has not stated why it has dropped its case against Mr. Mawji (or the others), but the regulator did permanently ban Mr. Mawji on Feb. 20, 2020, citing his conviction in Germany.