B.C. couple can't use bankruptcy to get out of paying $19M to regulator, appeal court rules
For the second time in a year, British Columbia's highest court has dismissed an appeal from a couple attempting to use bankruptcy to rid themselves of millions of dollars in penalties imposed by the province's financial markets regulator.
Thalbinder Singh Poonian and Shailu Poonian owe the B.C. Securities Commission a combined $19 million for market manipulation that a panel of the commission found them to have committed.
The total includes $13.5 million in administrative penalties and $5.5 million in "disgorgement of their ill-gotten gains," according to a statement from the BCSC.
In November, the B.C. Court of Appeal dismissed an appeal from the couple in which they argued that the master who handled their application for discharge from bankruptcy had erred in various ways when deciding not to release them from their BCSC debt.
That appeal was dismissed, with the trio of appeal judges agreeing there was "no merit in any of the grounds of appeal identified by the appellants."
The couple brought their most recent appeal against an order from the B.C. Supreme Court that declared their BCSC debts could not be released through the bankruptcy process.
In a decision issued earlier this month, the appeal court again rejected the couple's arguments.
This time, the Poonians argued that the supreme court judge had erred in relying on an Alberta court decision that was later reversed by that province's appeal court.
While the B.C. appeal judges did find that the supreme court judge had erred in this regard, they concluded that the lower court's decision was still correct. The couple's debts "arise from obtaining property or services by false pretenses or fraudulent misrepresentation," and are therefore valid exceptions to the list of debts that can be discharged through bankruptcy, the appeal judges wrote in their decision.
The BCSC sanctioned the Poonians in 2015 for manipulating the share price of OSE Corp., an Ontario company listed on the TSX Venture Exchange. The market manipulation occurred between 2007 and 2009.
"The panel concluded that the Poonians inflated the share price through trading among themselves, relatives, friends and acquaintances, and then illegally obtained approximately $7 million by selling OSE shares to unsuspecting buyers," the BCSC said in its statement.
So far, the Poonians have not paid any portion of the $19 million they owe the BCSC. Any part of the $5.5 million disgorgement that is recovered will be returned to investors, the commission said.
CTVNews.ca Top Stories
From outer space? Sask. farmers baffled after discovering strange wreckage in field
A family of fifth generation farmers from Ituna, Sask. are trying to find answers after discovering several strange objects lying on their land.
Broadcaster and commentator Rex Murphy dead at 77: National Post
The National Post is reporting that Rex Murphy, the pundit and columnist who hosted a national call-in radio show for decades, has died.
Pearson gold heist suspect arrested after flying into Toronto from India
Another suspect is in custody in connection with the gold heist at Toronto Pearson International Airport last year, police say.
Millions of cyberattacks per hour as B.C. government investigates multiple breaches
Careful attention to government statements and legislation is required to get a handle on the level of risk British Columbians’ information is under, as investigators probe multiple breaches under a continued barrage of attacks.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Debate on abortion rights erupts on Parliament Hill, Poilievre vows he won't legislate
A Conservative government led by Pierre Poilievre would not legislate on, nor use the notwithstanding clause, on abortion, his office says, as anti-abortion protesters gather on Parliament Hill.
Justin and Hailey Bieber are expecting their first child together
Hailey and Justin Bieber are going to be parents. The couple announced the news on Thursday on Instagram, both sharing a video that showcases Hailey Bieber's growing belly.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
New 'Lord of the Rings' film coming in 2026
The Oscar-winning team behind the nearly US$6 billion blockbuster 'Lord of the Rings' and 'The Hobbit' trilogies is reuniting to produce two new films.