The regulator is punishing a man for multiple acts of market misconduct
In an August 17 release, the ASC announced sanctions against Saileshwar Narayan, along with his established companies Prospera Mortgage Investment Corporation (PMIC) and Prosperity Development Group Ltd. (PDGL) for engaging in capital market misconduct.
The release alleges that Narayan used PMIC and PDGL to raise over $5.8 million from the public. Narayan, PMIC, and PDGL admitted to all charges from a June 8, 2015 Notice of Hearing, which include allegations that:
- PMIC and Narayan perpetrated a fraud on PMIC investors.
- PMIC failed to comply with a written undertaking given to the Executive Director of the ASC, made prohibited representations to investors, and illegally traded and distributed its securities.
- PDGL and Narayan perpetrated a fraud on PDGL investors.
- PDGL made misleading or untrue statements to investors.
Consequently, an ASC panel issued a sentence with the following punishments:
- Narayan is ordered to disgorge $880,951 he obtained from non-compliance with Alberta securities laws, and pay an administrative penalty of $300,000 and costs of $95,000.
- He is permanently prohibited from trading in or purchasing securities or derivatives or using exemptions under Alberta securities laws (with limited exceptions).
- He is permanently prohibited from acting as a registrant, investment fund manager or promoter, acting in a management or consultative capacity in connection with activities in the securities market or engaging in investor relations activities.
- PMIC and PDGL are permanently prohibited from trading in or purchasing securities or derivatives, using exemptions under Alberta securities laws or engaging in investor relations activities.
- All trading in or purchasing of securities of PMIC and PDGL are to permanently cease.
"Given Narayan's dishonesty in raising and spending investors' money… we are of the opinion that he has little, if any, regard for truth when it comes to separating people from their money. There is nothing more fundamental to the protection of the investor public than telling the truth when raising funds," the ASC declared.
The regulator added that a $300,000 administrative penalty would send "a warning to others planning to raise money from the public about the dangers and consequences of fraud, misrepresentation, and failure to follow Alberta securities laws."
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