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
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
'Sophisticated' cyberattacks detected on B.C. government networks, premier says
There has been a "sophisticated" cybersecurity breach detected on B.C. government networks, Premier David Eby confirmed Wednesday evening.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
Canucks claw out 5-4 comeback win over Oilers in Game 1
Dakota Joshua had a goal and two assists and the Vancouver Canucks scored three third-period goals to claw out a 5-4 comeback victory over the Edmonton Oilers in Game 1 of their second-round playoff series Wednesday.
Nijjar murder suspect says he had Canadian study permit in immigration firm's video
One of the Indian nationals accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar says in a social media video that he received a Canadian study permit with the help of an Indian immigration consultancy.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.