OSC Panel Issues Sanctions Against Maple Leaf Investment Fund Corp., Joe Henry Chau, Tulsiani Investments Inc. and Sunil Tulsiani for Breaches of the Securities Act

TORONTO, March 22, 2012 /CNW/ - In a decision released today, an Ontario Securities Commission (OSC) panel released its Reasons and Decision on Sanctions and Costs against Maple Leaf Investment Fund Corp. (Maple Leaf), Joe Henry Chau (Chau), Tulsiani Investments Inc. (Tulsiani Investments) and Sunil Tulsiani (Tulsiani).

In its earlier decision on the merits, the OSC panel found that the Respondents had committed multiple breaches of the Ontario Securities Act arising from the sale of Maple Leaf bonds to members of the public, which raised over $4 million from over 80 investors (primarily from Ontario). The OSC panel concluded that the conduct of the Respondents was egregious and dishonest, and that they preyed on vulnerable investors, many of whom did not understand the purported investments.

In its decision on sanctions and costs, the OSC panel found that "the Respondents cannot be trusted to participate in the capital markets" and accordingly ordered permanent market prohibitions against all Respondents. In addition, the OSC panel ordered that:

• Chau pay an administrative penalty of $450,000;
• Tulsiani pay an administrative penalty of $200,000;
• Chau and MLIF disgorge on a joint and several basis, the amount of $3,062,106;
• Tulsiani and Tulsiani Investments disgorge on a joint and several basis together with Chau and MLIF, the amount of $70,000;
• Chau and MLIF pay costs of $163,700 on a joint and several basis; and
• Tulsiani and Tulsiani Investments pay costs of $81,800 on a joint and several basis.

A copy of the Reasons and Decision on Sanctions in this matter is available on the OSC website at www.osc.gov.on.ca

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC's investor materials available at www.osc.gov.on.ca

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