The Ontario Securities Commission (OSC) is accusing a man that teaches futures trading with engaging in unregistered trading and making false statements to the regulator.
The OSC issued a notice of hearing Friday alleging that Fawad Ul Haq Khan, who operates a trading school in Mississauga, Ont., and his firm, Khan Trading Associates Inc. (carrying on business as Money Plus), engaged in unregistered trading and advising in commodity futures; and that they made misrepresentations to OSC staff and misled the commission.
According to the OSC’s allegations, Khan teaches how to trade commodity futures contracts, including foreign exchange and indices. And, after teaching his trading strategies, he assists his students to open trading accounts at specific brokerage firms and receives undisclosed referral fees.
“After his students open trading accounts, Khan advises his students, and in some cases, trades on behalf of his students, without being registered, contrary to Ontario commodity futures law and contrary to the public interest,” it claims.
It also charges that he made statements to OSC staff that “were misleading”, concerning his compensation, his role in his students opening brokerage accounts, and his students’ success rate. “Khan advised staff that his students were successful in their trading when in fact the large majority of them sustained losses,” it says.
None of the allegations have been proven. The has OSC set Feb. 5, 2013 as the first time for the case to be heard.