The Ontario Securities Commission (OSC) has imposed sanctions against Rare Investments and two men for their role in a million dollar foreign-exchange trading scheme.
In June 2014, the OSC ruled that Rare Investments, Ramadhar Dookhie, and Evgueni Todorov, breached securities laws and acted contrary to the public interest when they solicited over $1.2 million from investors to fund a forex trading scheme. In return, the investors received promissory notes that carried a monthly interest rate of between 1% and 3%.
The OSC panel ruled that the notes amounted to securities that were issued without a prospectus or an exemption, and that the respondents traded without registration.
See: Foreign exchange trading scheme violated securities law: OSC
In a decision on sanctions and costs handed down on March 5, the OSC reprimanded the three respondents and imposed permanent cease trade orders against them.
As well, the respondents are permanently prohibited from acquiring securities and using any exemptions under Ontario securities law.
Dookhie and Todorov are banned from holding or becoming officers or directors, acting as registrants and acting as promoters.
Dookhie was ordered to pay a $250,000 penalty, while Todorov must pay a penalty of $150,000.
Dookhie and Rare were ordered to disgorge more than $720,000, while Todorov must disgorge more than $320,000.
Dookhie and Rare were ordered to pay $184,500 in costs, while Todorov must pay $82,891.
Edward Kerwin, OSC commission, said the sanctions will deter others “from engaging in similar misconduct” and “are proportionate to the circumstances and conduct of each respondent.”