News Release
BCSC EXECUTIVE DIRECTOR'S BULLETIN: Securities regulator alleges fraud and issues temporary order against principal of investor relations firm
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Date:
2007-11-29 -
Number:
2007/78
Vancouver - The Executive Director of the British Columbia Securities Commission has issued a temporary order and notice of hearing against the president and CEO of a Vancouver-based investor relations firm alleging the distribution of approximately $2.2 million of promissory notes to at least 150 investors was an investment scheme.
The notice of hearing states that Anwar Badshah is the principal of Badshah Communications Group Ltd. (BCG), an investor relations and corporate communications firm that promotes third-party publicly traded companies. Badshah is the company's CEO, president, secretary and treasurer.
The notice alleges Badshah and BCG committed fraud by operating an investment scheme since at least April 2005 involving the sale of securities in the form of promissory notes typically guaranteeing investors 100 per cent returns. Other allegations against Badshah include illegal distribution, unregistered advising and misrepresentations to investors and potential investors.
The notice states the respondents are not registered under the Securities Act, nor has a prospectus ever been filed in B.C. for the distribution of the promissory notes. It also alleges money received from investors to buy securities was used to pay personal expenses and to make payments to early investors in the investment scheme.
These allegations have not been proven. A hearing will be held on the 12th Floor Hearing Room, 701 West Georgia Street, Vancouver, B.C., on Dec. 11, 2007 at 10:00 a.m. At the hearing, counsel representing the Executive Director will ask the Commission to extend the temporary order.
The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our webste www.bcsc.bc.ca by typing Anwar Badshah in the search box or 2007 BCSECCOM 700. If you have questions, contact Ken Gracey, Media Relations, 604-899-6577.
Learn how to avoid investment fraud at the BCSC's investor education website: www.investright.org.