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
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.