The executive director of the British Columbia Securities Commission has issued a temporary order and notice of hearing against the president and CEO of a Vancouver-based investor relations firm alleging the distribution of approximately $2.2 million of promissory notes to at least 150 investors was an investment scheme.

The notice of hearing states that Anwar Badshah is the principal of Badshah Communications Group Ltd. (BCG), an investor relations and corporate communications firm that promotes third-party publically traded companies. Badshah is the company’s CEO, president, secretary and treasurer.

The notice alleges Badshah and BCG committed fraud by operating an investment scheme since at least April 2005 involving the sale of securities in the form of promissory notes typically guaranteeing investors 100% returns.

Other allegations against Badshah include illegal distribution, unregistered advising and misrepresentations to investors and potential investors.

The notice states the respondents are not registered under the Securities Act, nor has a prospectus ever been filed in B.C. for the distribution of the promissory notes. It also alleges money received from investors to buy securities was used to pay personal expenses and to make payments to early investors in the investment scheme.

These allegations have not been proven. A hearing will be held in Vancouver on December 11.