Quebec securities regulators have issued freeze orders on against an insurance rep, his brother, and their companies, amid allegations that they sold insurance and RESPs, but diverted clients’ money.
The Autorité des marchés financiers (AMF) announced on Wednesday that the Bureau de décision et de révision has issued freeze orders and cease trade orders against Kamran Shahid, his brother, Imran Shahid, and the companies, 9322-5746 Québec inc. and 7267711 Canada inc. The orders freeze their funds, securities and other assets.
The decision by the Bureau immediately suspends Kamran Shahid’s insurance certificate and the registration of 9322-5746 Québec inc., which operates primarily under the name Services assurance et investissement Platinum, the AMF says in a statement. Orders were also issued prohibiting the Shahids from trading in securities, the AMF statement adds.
The action comes after the AMF’s investigation revealed that the Shahids allegedly sold disability insurance policies and RESPs to clients who never received the policies, or the RESPs, the AMF statement says. The AMF statement also says that some clients allege that their signatures were forged on certain documents, and that the Shahids misappropriated funds belonging to various clients.
The allegations have not been proven.