The British Columbia Securities Commission (BCSC) has sanctioned a Vancouver man who admitted to violating securities laws by illegally distributing securities.
In a settlement with the BCSC, Geoffrey Rajay Sidhu agreed to a seven-and-a-half year ban and to pay $900,000 in disgorgement, along with a $50,000 penalty.
The BCSC said that Sidhu has already paid the penalty and has six months to pay the disgorgement.
The settlement stemmed from an allegation that Sidhu illegally distributed securities by brokering an investor’s $1.75-million investment in a company, Bracetek Industries Group Ltd., controlled by Sidhu’s father.
“Sidhu spoke with the woman about Bracetek before she invested and helped her to complete the subscription agreement,” the regulator said in a release.
However, Bracetek did not file a prospectus and didn’t have an exemption to sell securities without a prospectus. The investor also didn’t qualify to make an exempt investment, the BCSC said.
If and when the disgorgement is paid, the investor will be able to make a claim on that money, the BCSC said.