The CEO of a Brampton, Ont.-based company has been fined $15,000 by the Ontario Securities Commission for trading in securities without registration.

Ravinder Tulsiani was CEO and a director of Tulsiani Investments, an Ontario company incorporated in May 2007. Through its promotional materials, Tulsiani Investments purported to offer investors high-yield revenue properties that hold great potential for growth. Tulsiani Investments has never been registered in any capacity with the OSC.

Tulsiani also operated Private Investment Club, which promoted investment opportunities to its fee-paying members, and which has also never been registered with the commission.

The OSC found that in December 2008, Tulsiani and Tulsiani Investments participated in the sale of Maple Leaf Investment Fund 401 series bonds to members of the investment club. In particular, Tulsiani invited investors to attend seminars to learn about the bonds, was present when potential investors were led to believe that the bonds were “risk-free,” assisted some investors with completing subscription agreements and other documents related to the bonds, and was present when funds from some investors were accepted for the purchase of the bonds.

In total, Tulsiani Investments contributed to raising approximately $1.8 million from the sale of the 401 bonds to approximately 35 investors, according to the OSC. Approximately $825,000 of this amount was later returned to investors as redemptions, when investors were asked in January 2009 to either redeem their bond or roll their funds over into a 402 bond.

Tulsiani admitted that he contravened Ontario securities law and acted contrary to the public interest by trading in securities without registration.

Under the settlement agreement, Tulsiani is prohibited for eight years from trading in or acquiring any securities, from becoming or acting as a director or officer of any issuer, registrant, or investment fund manager, and from becoming or acting as a registrant, investment fund manager or promoter.

He must also pay an administrative penalty of $15,000 to be paid for the benefit of third parties designated by the OSC, and must pay $5,000 in costs.

IE