BCSC alleges illegal distributions
Vancouver - The Executive Director of the British Columbia Securities Commission (BCSC) has issued a notice of hearing alleging that Flexfi Inc. and Afshin Ardalan distributed securities without a prospectus and without an available exemption from the prospectus requirement.
Flexfi, formerly known as CC Cornerstone Credit Ltd., is a microloan business registered as an extra-provincial company in B.C. Ardalan, a B.C. resident, is a founding director of Flexfi and has been its president and sole officer since the company's inception.
The notice alleges that between 2013 and 2016, Flexfi sold securities in the form of unsecured loans to 66 investors, who made 84 investments totalling $6.92 million. Flexfi did not file a prospectus for any of these distributions. Approximately $2.2 million of Flexfi's distributions, sold to 47 investors who made 52 investments, did not qualify for exemptions from the prospectus requirement.
The notice also alleges that as the president, sole officer, and a director of Flexfi, Ardalan is liable for Flexfi's distributions.
These allegations have not been proven. A hearing in this matter has been scheduled for February 13, 2018, at 10 a.m.
You may view the notice of hearing on our website, www.bcsc.bc.ca, by typing Flexfi Inc., Afshin Ardalan or 2018 BCSECCOM 45 in the search box. Information about disciplinary proceedings can be found in the Enforcement section of the BCSC website.
Please visit the Canadian Securities Administrators' (CSA) Disciplined List for information relating to persons and companies disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA).
About the British Columbia Securities Commission (www.bcsc.bc.ca)
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital
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