The Ontario Securities Commission (OSC) released a decision this week to ban a former Alberta sales representative from acting as a registrant in Ontario.
At an inter-jurisdictional enforcement proceeding, OSC staff requested a protective order against Farang (Fred) Dagostar Nikoo. Sections of the Ontario Securities Act allow the OSC to issue protective and preventative orders to ensure that misconduct taking place in another jurisdiction will not be repeated in Ontario.
It also allows the Commission to make such an order if the subject of the order has previously agreed to sanctions imposed by another regulatory authority.
In a settlement agreement with the Alberta Securities Commission, Nikoo admitted to promoting the sale of securities while not being registered as an advisor. Until October 2016 Nikoo was registered as a mutual fund salesperson.
Investors told they would double their money
In 2012 the representative began selling securities of Bluforest, Inc., telling investors that they would double their money, and that the securities would be listed on the NASDAQ. Nikoo was not compensated directly for his activities but did receive a $30,000 payment from another individual selling the securities.
In the ASC settlement agreement, Nikoo admitted to acting as an advisor without registration and to making statements that he knew were misleading or untrue. The ASC banned Nikoo for 10 years, prohibiting him from acting as a registrant. Nikoo also agreed to pay a fine of $50,000 and $20,000 in costs. He did not participate in the Ontario proceedings. The Ontario regulator matched the ASC’s ban, ordering that Nikoo be prohibited from becoming or acting as a registrant until February 2029.
