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Vancouver man must pay almost $1 million for illegally distributing securities

·2 min read

VANCOUVER, BC, Sept. 13, 2022 /CNW/ - A Vancouver man must pay $950,000 in a settlement with the British Columbia Securities Commission (BCSC) for illegally distributing securities to an investor.

Geoffrey Rajay Sidhu met the investor in November 2015. When she obtained a $2 million mortgage, Sidhu helped her invest $1.75 million of the mortgage proceeds in Bracetek Industries Group Ltd., whose sole officer and director was Sidhu's father.

Bracetek was in the business of developing, manufacturing and selling proprietary braces used in residential and commercial construction. It licensed the technologies used in the braces from companies controlled by Sidhu.

Sidhu spoke with the woman about Bracetek before she invested and helped her to complete the subscription agreement.

Bracetek used $900,000 of the investor's funds for unpaid licensing fees owed to companies controlled by Sidhu.

Bracetek did not file a prospectus, a formal document providing details of an investment. The company did not have an exemption to sell securities without a prospectus, nor was the investor eligible for a non-prospectus securities purchase.

In acting in furtherance of Bracetek's trade with the investor, Sidhu illegally distributed securities, violating the Securities Act.

Under the settlement agreement, Sidhu has paid $50,000 to the BCSC, and must pay another $900,000 within six months.

Once the BCSC receives the $900,000, a notice will be published, and the investor may make a claim for payment from the money received.

Sidhu is also prohibited from trading or purchasing securities or derivatives unrelated to his own accounts for a period of seven and a half years, and from becoming or acting as director or officer of any issuer or registrant, other than for six named issuers that he currently oversees.

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

  • A securities market that is fair and warrants public confidence

  • A dynamic and competitive securities industry that provides investment opportunities and access to capital

Learn how to protect yourself and become a more informed investor at www.investright.org

SOURCE British Columbia Securities Commission

Cision
Cision

View original content: http://www.newswire.ca/en/releases/archive/September2022/13/c1091.html