The executive director of the British Columbia Securities Commission has issued a temporary order and notice of hearing alleging that five B.C. residents engaged in a market manipulation when their co-ordinated activities resulted in a misleading appearance of trading activity in, or an artificial price for, shares in a company that was listed on the TSX Venture Exchange.
The executive director issues temporary orders in situations where the length of time required to hold a hearing could be prejudicial to the public interest.
The notice alleges that Thalbinder (Thal). Singh Poonian, Shailu Sharon Poonian, Robert Joseph Leyk, Manjit Singh Sihota, and Perminder Sihota participated in a scheme to manipulate the share price of OSE Corp., an Ontario company’s whose shares traded on the TSX Venture Exchange. OSE had a head office in Delta, B.C.
Thal Poonian is the director and officer of Great Pacific International Inc. (TSX: V.GPI, Stock Forum) and Logan Copper Inc. (TSX: V.LC, Stock Forum), which are also based in Delta. Sharon is his wife.
BCSC staff contends that the individuals named in the notice as well as certain relatives, friends and associates of Thalbinder and Sharon Poonian acquired a dominant share position in OSE by purchasing shares at 10 cents or 11 cents in two private placements in September 2007, and December 2007. By trading through brokerage accounts held by them, the group manipulated OSE’s share price to a high near $2 per share.
The group allegedly made approximately $7 million by selling 4.6 million shares of OSE shares to unsuspecting clients of Pheonix Credit Risk Management Consulting Inc., a company based in Richmond Hill, Ontario that provides debt management services.
At the conclusion of the alleged manipulation, OSE shares traded at $0.08 cents per share.
These allegations remain unproven. Counsel for the executive director will apply to extend the temporary order at a hearing on August 14, 2012.