Five Indo-Canadian men are among six who are facing stock market fraud charges which according to the BC Securities Commission has netted them a total of $46 million in alleged ill-gotten gains. Central to the fraud scheme are brothers Kamaldeep Thindal, a Langley resident, and Amandeep Thindal, of Surrey. Others include Vancouver resident Yazan Al Homsi, Core’s former vice-president of investments; Delta resident Pardeep Luddu, a Core associate; Aarun Kumar, a former registered securities dealer living in Vancouver and Core’s vice-president of corporate development; and Kumar’s uncle Mani Chopra, a retired securities lawyer residing in West Vancouver.
By DESIBUZZCanada Staff With News Files
VANCOUVER – Five Indo-Canadian men are among six who are facing stock market fraud charges which according to the BC Securities Commission has netted them a total of $46 million in alleged ill-gotten gains.
The B.C. Securities Commission has alleged six Metro Vancouver residents, including a former securities lawyer, orchestrated a pump-and-dump scheme across three Vancouver-based companies, netting approximately $46 million.
Central to the fraud scheme are brothers Kamaldeep Thindal, a Langley resident, and Amandeep Thindal, of Surrey.
The brothers run Core Capital Partners Inc. whose sole director is Kamaldeep Thindal its CFO is Amandeep Thindal.
The Thindal brothers are named as hearing respondents to the administrative charges of violating the B.C. Securities Act alongside: Vancouver resident Yazan Al Homsi, Core’s former vice-president of investments; Delta resident Pardeep Luddu, a Core associate; Aarun Kumar, a former registered securities dealer living in Vancouver and Core’s vice-president of corporate development; and Kumar’s uncle Mani Chopra, a retired securities lawyer residing in West Vancouver, reported Business In Vancouver (BIV) publication.
The commission alleges Core was the unregistered investment vehicle used to raise money for the three companies that were claiming to be in business sectors that were particularly popular with investors at the time: health-care technology, cryptocurrency mining and cannabis production.
The group, together and separately, obtained cheap shares of the companies and then concealed their control of them via relatives, corporations, and nominees. The group then coordinated misleading news releases and promotional campaigns to increase interest (the pump) in the stock before selling those concealed shares (the dump) during the promotions, for net proceeds of $46 million, reported BIV.
Kamaldeep Thindal, who resides in a $3.7-million home on a half-acre in south Langley, according to securities documents, is alleged to have netted $22.2 million from the alleged illegal trades.
Following its investigation, the commission claims Al Homsi netted $11.4 million; Kumar took in $5.1 million; Amandeep Thindal netted $4.5 million; Luddu obtained $1.7 million; and Chopra profited to the tune of $1.2 million.
“The Respondents carried out a pump-and-dump scheme that created a misleading appearance of trading activity in, or an artificial price for, the securities of three reporting issuers in British Columbia,” stated the commission’s hearing notice signed by executive director Peter Brady July 21.
The commission is also alleging Core committed market manipulation, as assisted by the group.
“While they were directors, officers, employees or agents of Core Capital, K. Thindal, A. Thindal, Al Homsi, Chopra, Luddu and Kumar authorized, permitted or acquiesced in Core Capital’s contraventions” of the B.C. Securities Act, the notice states.
According to the allegations, which have not been proven in court, the scheme was carried out from 2017 to 2019 with:
• Reliq Health Technologies Inc., formerly known as Moseda Technologies Inc., a health-care technology company, whose shares trade on the TSX Venture Exchange.
• Block One Capital Inc., formerly Essex Angel Capital Inc. and now known as AI Artificial Intelligence Ventures Inc., an investment issuer in Vancouver.
• CNRP Mining Inc., now known as LEEF Brands Inc., a Vancouver mining company whose shares traded on the Canadian Securities Exchange and were quoted on U.S. over-the-counter markets. In 2018, the Core Capital associates caused CNRP to change its name to Integrated Cannabis Company, Inc.
Core Capital is the key respondent along with:
• Kamaldeep Thindal of Langley, the managing partner and sole director of Core Capital.
• Amandeep Thindal of Surrey, Core Capital’s CFO and brother of Kamaldeep Thindal.
• Yazan Al Homsi of Vancouver, formerly Core Capital’s vice-president of investments.
• Pardeep Luddu of Delta, an associate with Core Capital.
• Aarun Kumar, a.k.a. Aaron Rai Kumar, of Vancouver, Core Capital’s vice-president of corporate development.
• And Mani Chopra of West Vancouver, a retired securities lawyer with no official title at Core Capital, and Kumar’s uncle.
The Commission alleges Core Capital and the six individual respondents violated the Securities Act with their conduct related to Reliq, Block One and CNRP/Integrated, “and that they knew — or reasonably should have known — that such conduct would result in or contribute to a misleading appearance of trading activity, or an artificial price for a security or exchange contract,” reported Postmedia
In a statement last week, Core Capital said it had hoped to resolve the multi-year Commission investigation “without the need for a public spectacle.”
It said that over five years, the Commission has had access to its personal and business bank accounts, brokerage accounts, trading history, and personal communications.
“In that same time, we have expended countless hours and incurred significant legal expense navigating the process, and had to go to incredible lengths to protect our interests and privacy, without an opportunity to defend ourselves.”
Core Capital said the company is concerned the Commission is using “its significant and largely unchecked powers to freeze our assets for over four years without any allegation of wrongdoing, and to pursue what we view is a meritless investigation.”
It said it plans to “vigorously” defend itself against the allegations, reported Postmedia.
The group is scheduled to attend its first appearance before the commission on Oct. 12, in order to schedule a hearing date.A full statement detailing the allegations is available at www.bcsc.bc.ca.
