Global Partners slapped with $1.4 million penalty

The Ontario Securities Commission has levied $1.4 million in administrative penalties against Global Partners Capital and associated companies. The six individuals involved in the case and other associated companies were asked to give up more than $2.2 million of ill-gotten gains from an investment fraud perpetrated on investors in several countries.

In the statement of allegations, OSC alleged that between February 2006 and October 2007, the accused were involved in a scheme to market and issue securities of a company called Asia Pacific. Asia Pacific shares were sold to over 110 investors, raising a total of over US $2.2 million. The investors were primarily located in the United States, but there were others in the United Kingdom, the Caribbean, New Zealand, Singapore and Ontario.

Those charged were involved in fraudulent and misleading activities related to the issuance of these securities, for which registration and prospectus requirements were not met, and for which the offenders did not claim any exemptions under Ontario Securities Laws relating to the sale and distribution of securities.

It is also alleged that prohibited representations and undertakings were made to investors with the intention of effecting trades in Asia Pacific securities, contrary to section 38 of the Act and contrary to the public interest.

The OSC had ruled in last year’s decision that the fraud was committed through a company called Global Partners Capital, a front for the scheme.

Christine Pan, described as a “directing mind” of the scheme, was handed the biggest individual administrative penalty. Other ringleaders involved in the scheme include Rafique Jiwani, also known as Ralph Jay, Gurdip Singh Gahunia, also known as Michael Gahunia or Shawn Miller; Alex Pidgeon, Hau Wai Cheung, also known as Peter Cheung; Basil Marcellinius Toussaint, also known as Peter Beckford, and were asked to disgorge varying amounts in administrative mentalities, in addition to a total of about $85,700 towards the commission’s costs.