After multiple days of hearings, the final arguments, over an alleged $46 million pump and dump scheme involving brothers from 91原创 and Surrey, are set for early next year before a B.C. Securities Commission panel.
The BC Securities Commission (BCSC) enforcement action targets Core Capital Partners and six people associated with it. Core Capital's managing partner and sole director, Kamaldeep Thindal, is a 91原创 resident. His brother Amandeep, Core Capital's CFO, lives in Surrey.
According to an amended hearing notice filed this spring, Core is alleged to have used pump and dump tactics on three companies: Reliq Health Technologies, Block One Capital, and LEEF Brands Inc.
In each case, between 2017 and 2018, the BCSC claims that Core Capital and the others named in the enforcement action first bought up significant amounts of stock in what were low-value companies. They gained control of the firms' boards of directors.
They then launched massive promotional campaigns for the firms, including using what the BCSC claims were misleading press releases, to drive up interest in the companies' stock. Each company saw the value of its stock jump substantially.
The people associated with Core Capital then allegedly unloaded their stock. The value of each firm crashed afterwards, leaving other investors who had bought at inflated values facing losses.
According to the hearing notice, the BCSC believes that Kamaldeep Thindal netted $22.25 million, Yazan Al Homsi $11.41 million, Amaldeep Thindal $4.49 million, Pardeep Luddu $1.67 million, Aarun Kumar $5.14 million, and Mani Chopra $1.2 million.
In 2019, the BCSC began taking action, freezing bank accounts and brokerage accounts associated with Core Capital.
A string of hearing dates was held in April, May, and June at the commission's Vancouver offices, with a three-person panel hearing evidence and arguments. Core Capital's lawyers also wrangled with the BCSC over disclosure of internal communications and documents, with a partial victory. Some internal communications were ordered turned over to Core Capital's lawyers, but others were declared to be irrelevant or protected by privilege.
There are now just two dates of additional hearings scheduled, for Jan. 8 and 10, 2025. Both are scheduled for final submissions on liability 鈥� essentially, closing arguments for both sides.
In a statement on the BCSC allegations last year, Core Capital said it had always adhered to "the highest levels of compliance and ethical business practices."
Speaking for Core Capital, a statement from consultant Alistair Morton said that the company had been working with the commission throughout its five-year investigation. Core was highly critical of the BCSC's actions, claiming it was using "significant and largely unchecked powers" to pursue a "meritless investigation."
The BCSC has the power to impose financial penalties of up to $1 million per violation of the Securities Act, as well as to ban people from trading in securities.
