The Alberta Securities Commission has reciprocated a British Columbia Securities Commission order and permanently banned a B.C. man who illegally traded and distributed securities.

Cem Ali was permanently banned by the BCSC in December 2009. He admitted that he illegally traded and distributed securities, made misrepresentations, and contravened a cease trade order issued by the BCSC.

Ali traded and distributed Horizon FX Investments Limited Partnership securities to more than 950 investors, raising approximately US$34 million, without being registered and without filing a prospectus. Investor funds were sent to a U.S. company, Razor FX, Inc., that purported to trade Forex contracts on behalf of Horizon LP. Horizon LP later went bankrupt.

In addition, Ali made misrepresentations by making untrue, false or misleading statements in an offering memorandum, website and brochure that promoted the sale Horizon LP securities. He also received approximately $2.5 million of investor funds after the BCSC issued a cease trade order on Oct. 18, 2007.

ASC staff presented evidence that Ali was active in the Alberta market in July 2007, and therefore reciprocated the BCSC order against him. He is permanently banned from trading in securities; becoming or acting as a director or officer of any issuer; becoming or acting as a registrant, investment fund manager or promoter; acting in a management or consultative capacity in connection with activities in the securities market; and disseminating to the public any oral or written communications, by or on behalf of any issuer, that promote or reasonably could be expected to promote the purchase or sale of securities of such issuer.

IE