ASC sanctions pair in market manipulation scheme

By James Langton | August 18, 2021 | Last updated on August 18, 2021
2 min read

An Alberta Securities Commission (ASC) panel has ordered market bans and monetary sanctions against a pair of men over their involvement in a pump-and-dump scheme.

The ASC hearing panel found that Ashmit Patel orchestrated a market manipulation scheme involving the shares of a company known as Kilimanjaro Capital Ltd. (now known as N1 Technologies Inc.). Zulfikar Rashid, who served as the company’s figurehead CEO, also breached securities law, the panel said.

“Patel was the architect of the manipulation of Kilimanjaro shares — a pump and dump scheme lasting several months — in which he covertly exerted control over virtually all aspects of the scheme while using Rashid as his nominee,” the panel noted.

Following a hearing on sanctions, the ASC panel ordered that Patel be permanently banned, ordered to pay $117,400 in disgorgement, a $450,000 penalty and $120,000 in costs.

Rashid was banned from trading for eight years and from serving as a director or officer for 10 years. He was also ordered to pay a $75,000 penalty and $30,000 in costs.

While the panel accepted the sanctions sought against Patel by ASC staff in the case, they imposed lower penalties against Rashid.

According to its decision, staff asked for a 12-year ban against Rashid and a $125,000 penalty.

However, the panel noted that Rashid’s role in the scheme was less serious than Patel’s, and that he apparently lost money too.

“Evidence that he contributed — and perhaps lost — as much as $200,000 to pay for Kilimanjaro’s expenses supported his position that he did not mean to cause harm to individual investors (many of whom were Rashid’s family and business associates who invested in Kilimanjaro at Rashid’s suggestion),” the panel said, noting that he didn’t benefit from his misconduct.

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James Langton

James is a senior reporter for and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.