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by Mike Caswell

The B.C. Securities Commission has filed a case against Burnaby resident Aarif Jamani, claiming that he was part of a three-year scheme to improperly sell millions of dollars worth of shares in OTC Pink companies. The BCSC says that Mr. Jamani and an associate obtained shares from third parties and unloaded those shares for $38.1-million (U.S.). They did so without having the proper registration, according to the BCSC.

The allegations against Mr. Jamani are contained in a notice of hearing that the BCSC released on Thursday, June 26. The BCSC claims that Mr. Jamani and another person, since deceased, obtained shares in OTC Pink listings and sold that stock using three private entities that they controlled. The sales were routed through five Canadian dealers, which the BCSC has not identified.

Thursday's notice provides few details of the scheme, such as the company names or the details of any underlying promotions. It does say that Mr. Jamani moved large amounts of money as part of the transactions. According to the notice, he sold $31.7-million (U.S.) worth of stock in one set of transactions, and then paid $26-million to third parties. (The notice does not specify the currency of the $26-million.) He also sold $6.4-million (U.S.) worth of stock in another set of transactions, the BCSC claims.

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