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.