Ontario stock manipulation scheme may have had victims in N.W.T.

The office of Ontario's Attorney General has collected nearly $3 million in potential compensation for victims of a stock manipulation scheme and say that they believe some residents of the Northwest Territories could beentitled to a piece.

Earlier this week, a notice posted in the Yellowknifer newspaper stated$2,955,212 had been "forfeited in relation to activity in contravention of the Ontario Securities Act that occurred between January 1, 2007 and June 30, 2009."

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It namesseveral related companies and individuals, including Phoenix Credit Risk Management Consulting Inc., Phoenix Capital Resources Inc., and Thalbinder Poonian, adding anyone who had suffered losses as "a result of the unlawful activity that was the subject of the forfeiture proceeding" can make claims for compensation.

"We have reason to believe that there are potential victims in the Northwest Territories in this case," statedBrian Gray, a spokesperson for Ontario's Attorney General, in an email, when asked why the notice appeared in the Yellowknifer.

He added"there may be victims in all provinces and territories."

2011 settlement

The notice is in relation to the share price manipulation ofpublicly-traded stock, Great Pacific International Inc. and OSECorp., between 2007 and 2009. The stock was traded on the TSXVenture Exchange.

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Investigators found that several individuals, including Thalbinder Poonian, manipulated the stock price by selling shares to unsuspecting buyers. Those buyers included the clients of Phoenix Credit Risk Management, as well as several affiliates.

The affiliates were paid commissions each time they arranged for a client to buy shares of OSE or Great Pacific International.

The nearly $3 million was forfeited by JawadRathore and Vince Petrozza former directors of Phoenix Credit Risk Management and Phoenix Capital Resources Inc.to the Ontario Securities Commission in 2011 after admittingthey contravened securities law and engaged in "conduct contrary to the public interest."

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Currently, Rathore and Petrozzaare heading up Fortress Real Developments, which is aiming to build a highrise condo building in Winnipeg, touted as the tallest tower between Toronto and Calgary. The future of the development is in question after RCMP raided the headquarters of the company, investigating syndicated mortgage fraud.

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The OSEstock manipulation was headed up by a group of five British Columbia residents and masterminded by Thalbinder Poonian, according to a 2015 British Columbia Securities Commission decision.

"The funds are first used to compensate victims of the unlawful activity which led to the forfeiture," said Gray. "In these circumstances, we post notices to try to alert all potential direct victims to the fact that they have a right to make a claim against the forfeited money."

Anyone who may have been impacted by the schemeis asked to contact Ontario's office of the Attorney General. Completed claims must be received by Oct. 10.

Were you impacted by the OSE Corp. stock manipulation scam? Send an email to garrett.hinchey@cbc.ca.