$7-million market manipulation unearthed

The executive director of the BCSC has issued a temporary order and notice of hearing alleging five B.C. residents engaged in a $7 million market manipulation.

The regulator’s notice alleges Thalbinder 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. BCSC staff contends this group acquired a dominant share position in OSE through a private placement.

By trading through their brokerage accounts, the group manipulated OSE’s share price to a high near $2.00 per share.

 Their coordinated activities resulted in a misleading appearance of trading activity in shares in a company listed on the TSX Venture Exchange.

They made approximately $7 million by selling shares to unsuspecting clients of Phoenix Credit Risk Management Consulting, a debt management company based in Richmond Hill, Ontario.

These allegations have not been proven. Counsel for the executive director will apply to extend the temporary order on August 14, 2012.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.