ASC sanctions Platinum Equities Inc. and connected entity for fraud

CALGARY, Oct.1, 2014 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Platinum Equities Inc. and Platinum 5 Acres and a Mule Limited Partnership for perpetrating a fraud on investors, and Shariff Chandran for allowing the latter's fraud. An ASC panel also sanctioned Platinum Equities, Shariff Chandran, Chitra Chandran, and four entities linked to Platinum Equities in connection with their respective capital-market misconduct involving illegal trades and distributions, misrepresentations, and conduct contrary to the public interest.

The ASC panel ordered that:

• Platinum Equities and Shariff Chandran must pay – jointly or individually – an administrative penalty of $1 million, Shariff Chandran must pay investigation and hearing costs of $136,500, and Platinum Equities must pay investigation and hearing costs of $21,000;
• Platinum Equities and Chitra Chandran must pay – jointly or individually – an administrative penalty of $150,000, and Chitra Chandran must pay investigation and hearing costs of $52,500;
• Shariff Chandran is banned, until the later of September 26, 2039 and the date his administrative penalty has been paid, from trading in or purchasing securities, using exemptions under Alberta securities laws, acting as a director or officer of any issuer, registrant or investment fund manager, advising in securities or exchange contracts, and acting in a management or consultative capacity in connection with activities in the securities market;
• Chitra Chandran is banned, until the later of September 26, 2024 and the date her administrative penalty has been paid, from trading in or purchasing securities, using exemptions under Alberta securities laws, acting as a director or officer of any issuer, registrant or investment fund manager, and acting in a management or consultative capacity in connection with activities in the securities market;
• all trading in or purchasing of securities of Platinum Equities, Deerfoot Court Real Estate Investment Fund Limited Partnership, Platinum 5 Acres and a Mule Limited Partnership, PMIC II Investments Ltd., and Qualia Real Estate Investment Fund VI Limited Partnership must permanently cease; and
• the named entities are permanently banned from trading in or purchasing securities, using exemptions under Alberta securities laws, acting as a registrant, investment fund manager or promoter, and acting in a management or consultative capacity in connection with activities in the securities market.

In making its ruling the ASC panel noted: "Over $58 million was raised from investors in the Platinum Issuer syndications, a significant portion of that through illegal trades and distributions. We share with Staff a concern that the apparent ease with which the respondents raised vast sums from investors, in part through serious and, in one aspect, systemic misconduct . . . could tempt any of the respondents – or observers – to attempt something similar in the absence of firm sanctions here. We view this as a real and profound risk to the investing public and to the integrity of our capital market."

The ASC panel did not order sanctions against Glenmore & Centre Retail Limited Partnership because it, now controlled by a company acting for the investors, is operating for the benefit of the investors.

Copies of the Merits decision and Sanction decision can be found on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws.  It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE: Alberta Securities Commission

For Media Inquiries: Mark Dickey, Senior Communications Advisor, 403.297.4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488