The B.C. Securities Commission has banned a B.C. resident who admitted that he broke securities laws when he raised US$34 million from almost 960 investors.
Cern Ali, a 33-year old B.C. resident, admitted he illegally traded and distributed securities, made misrepresentations and contravened a BCSC cease trade order.
Between August 29, 2006 and January 2008, Ali sold units of Horizon FX Investments LP without being registered and without filing a prospectus. The investors' funds were sent to U.S.-based Razor FX Inc. that purported to trade foreign exchange contracts on behalf of Horizon.
He also made misrepresentations by making false and misleading statements in marketing materials used to promote the sale of Horizon LP securities.
On September 1, 2009, Ali, Horizon LP, Horizon FX Investments Inc., and HFX Management services went bankrupt. The BCSC froze approximately $2.6 million in assets and property from Ali and his companies, which will be released to a bankruptcy trustee to be distributed to investors. Ali will also distribute to investors any money returned to him through a claim he filed for Horizon LP on the assets of Razor FX seized by U.S. authorities.
Under the settlement with the BCSC, Ali is permanently banned from engaging in investor relations activities, acting as a director or officer of any issuer, or becoming a registrant, investment fund manager or promoter and acting as a consultant for anything connected to the securities market. He is also permanently banned from trading and purchasing securities.
The BCSC would have assessed a $1 million fine if Ali was not already bankrupt.