British Columbia Securities Commission

British Columbia Securities Commission

November 09, 2009 13:30 ET

BCSC Executive Director's Bulletin: Securities Regulator Issues Notice of Hearing Against B.C. Man Who Raised Funds for Forex Trading

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2009) - The executive director of the British Columbia Securities Commission has issued a notice of hearing alleging that a B.C. man and three related entities made misrepresentations and perpetrated a fraud when raising funds intended for trading in spot foreign exchange (Forex) contracts.

The notice of hearing says that Cem Ali, HFX Management Services Inc., Horizon FX Investments Limited Partnership (Horizon LP), and Horizon FX Investments Incorporated sold approximately US $34 million of Horizon LP securities to 957 investors between Aug. 29, 2006 and January 2008 without being registered to trade securities or having filed a prospectus.

The notice alleges the respondents perpetrated a fraud when they made misrepresentations about having carefully selected a Forex trader and then sent investors' funds to a U.S. Forex company that turned out to be fraudulent. 

In addition, the notice alleges the respondents contravened a cease trade order against Horizon LP that the BCSC issued on Oct. 18, 2007.

These allegations have not been proven. Counsel for the executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on Nov. 26, 2009 at 9 a.m.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the notice of hearing on our website, www.bcsc.bc.ca. If you have questions, contact Ken Gracey, media relations, 604-899-6577.

Contact Information

  • British Columbia Securities Commission
    Ken Gracey
    Media Relations
    604-899-6577 or (Canada) 1-800-373-6393
    www.bcsc.bc.ca