SEC wins ban, $1.3-million (U.S.) judgment for Patel
2024-04-18 20:57 ET - Street Wire
Also Street Wire (U-VRSYF) VMS Rehab Systems Inc
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by Mike Caswell
The U.S. Securities and Exchange Commission has won a permanent ban and $1.3-million in financial sanctions against Ashmit Patel, a former Ontario lawyer charged for the pump-and-dump of OTC Markets listing VMS Rehab Systems Inc. (All figures are in U.S. dollars.) The SEC said that he was part of a group that boosted VMS and other listings with claims like "this stock could catapult by up to 155%." As those claims were going out, the group was secretly dumping hundreds of thousands of shares, some through unregistered offshore sales.
The penalties for Mr. Patel are contained in a judgment handed down on April 15, 2024, in federal court in San Diego. The $1.3-million includes disgorgement of $918,827 in gains, plus interest. Also included is a permanent penny stock ban and an injunction against future violations.
The SEC had requested a $1.1-million fine on top of the disgorgement, but the judge declined to enter any fine at all, citing the sentence that Mr. Patel received in a parallel criminal case. That sentence came after he pleaded guilty to one count of conspiracy to commit securities fraud in California. Prosecutors had sought jail or house arrest, but the judge spared Mr. Patel prison, imposing three years of probation.
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SEC secures ban and $1.3 million judgment against Patel, imposing a permanent penny stock ban and an injunction against future violations.
The Alberta Securities Commission mandates Patel to pay $687,000 Canadian dollars for prior infractions.
Critics decry Canadian regulators for levying paltry fines, allowing financial wrongdoers to evade meaningful consequences while wreaking havoc on investors' lives. Patel epitomizes the unchecked, unethical underbelly of the Canadian financial system.
Calls intensify for the Canadian government to hold financial criminals accountable. Why does Canada's criminal code not override the self-regulated Canadian investment industry, enabling repeat offenders to perpetrate even more egregious financial crimes?
Comparisons to petty theft highlight the absurdity: stealing a TV from Best Buy doesn't afford one the luxury of returning only a fraction of the goods and resuming thievery. Yet, in Canada, financial entities can brazenly defraud clients, conceal theft, deceive customers, and manipulate the legal system for personal gain, perpetuating a culture of dishonesty and corruption.
With trust in Canada's financial markets eroding, disillusioned investors are urged to seek refuge in reputable U.S. exchanges like S P500, DOW, and NASDAQ, where oversight by the SEC and the U.S. Justice Department provides a semblance of accountability sorely lacking in Canada's provincial and federal regulatory bodies.
The indictment against Canada's financial industry resounds: it's not a bastion of legitimacy but a sprawling criminal syndicate, profiting from deception, theft, and moral bankruptcy.
It's a wake-up call for Canadians to reconsider their investments and seek refuge in more transparent and accountable markets abroad.
Posted by Dave at 2024-04-19 09:03
Dave I agree with your thoughts 100%. Take it one step further our Canadian politicians are crooked as any other country. Debt out of control at the federal and provincial levels under the climate change narrative and Covid is just starting to affect the entire economy. this is only the beginning phase of inflation. We are only at 1982 when interest rates were 18 % (equivalent to todays 7 % rate ). We have a tough inflationary decade ahead of us. Who is going to hold these criminal politicians to account? Furthermore, the stock market in Canada has been micro managed by each Securities Commission to the point where there are very few promising companies in the pipeline, except a lot of fluff like crypto (the biggest scam (fraud) in the world). Canadian Securities Commission has approved a number of crypto related listings for the Canadian markets. What is the under lying asset of Crypto? Crypto experiment just like the climate change is not going to end well for the average Canadian citizen. Good luck investing in the Canda markets.
Posted by firefox at 2024-04-23 09:55
Copy and paste this url to see all the imploded multi billion dollar market cap stocks in Canada and USA. Average consumer has no chance of success in the next decade or so. Good luck investing.
https://wolfstreet.com/category/all/imploded-stocks/
Posted by firefox at 2024-04-23 10:05