The executive director of the British Columbia Securities Commission (BCSC) has issued a temporary order and notice of hearing alleging that five B.C. residents engaged in a market manipulation of the shares of Delta, B.C.-based OSE Corp. (TSXV: OSE).
The notice alleges that 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.
BCSC staff contends that the five individuals, as well as certain relatives, friends and associates of Thalbinder and Sharon Poonian, acquired a dominant share position in OSE through a private placement. By trading through brokerage accounts held by them, the group manipulated OSE’s share price to a high near $2.00 per share.
The group made approximately $7 million by selling shares to unsuspecting clients of Phoenix Credit Risk Management Consulting Inc, a company based in Richmond Hill, Ont. that provides debt management services.
These allegations have not been proven. Counsel for the executive director will apply to extend the temporary order on August 14.