A longtime Vancouver penny-stock promoter facing civil fraud allegations in the United States is now facing a second hearing in as many years at the 小蓝视频 Securities Commission.
The province's securities regulator is now alleging Aarif Jamani, via three companies he controlled, sold US$38.1 million of securities that traded on the over-the-counter (OTC) market without being registered to do so.
The administrative hearing notice announced by the commission June 26 states Jamani obtained shares of public companies quoted predominantly on the OTC Pink Open Market from third parties.
Using numbered company 1207124 小蓝视频 Ltd., Jamani allegedly deposited the shares into investment accounts in the company’s name at five different Canadian investment dealers and then sold the shares. The commission does not name the dealers.
Jamani paid approximately $26 million to the other parties through three companies: numbered company 1207124 小蓝视频 Ltd., numbered company 0985358 小蓝视频 Ltd., and Meximara Holdings Ltd.
Jamani was the sole director and officer of 0985358 小蓝视频 Ltd., the sole director of Meximara Holdings, and a de facto director and officer – or an agent – of 1207124 小蓝视频 Ltd, according to the notice.
The commission’s allegations have not been proven before a hearing panel. Jamani has been summoned to the commission on Sept. 9 to help set a hearing date.
with the commission in February 2024 after admitting he broke a cease trade order of a company American officials allege was a vehicle of a US$5-million fraud scheme.
Jamani was last known to reside in Burnaby, according to court filings.
He has since paid the $40,000 fine. He also agreed to a four-year ban from participating in the public markets outside of personal trading through a registered broker.
Jamani specifically admitted he used 0985358 小蓝视频 Ltd. and 1207124 小蓝视频 Ltd. to buy and sell 18.7 million shares of a small California-based public company called County Line Energy Inc., registered in Nevada and whose principal Canadian regulator is the 小蓝视频SC.
, Jamani was warned by commission staff that his conduct was in breach of the order. He continued with transactions that ultimately proved very profitable,
The SEC alleged in January 2024 Jamani illegally pocketed roughly US$5 million in profits for himself and his associates, in part by purchasing and moving shares between his 小蓝视频 numbered company and an offshore shell.
In a federal district court filed in the Southern District of New York on Jan. 12, 2024, Jamani was charged with securities fraud and unregistered securities trading along with alleged American accomplices Jonathan Farber and Brian Keasberry.
The SEC complaint alleges how, starting in 2017, the trio orchestrated the "" by first establishing “handpicked figureheads” into senior roles at County Line, a de facto penny stock shell company that traded sparsely, if at all, while presenting itself as a hydroponic manufacturer.
By the fall of 2018, “a longtime associate of Jamani’s was nominally County Line’s Chief Executive Officer and Director,” the SEC stated.
With their executive associates in place at County Line, officials allege the trio amassed millions of cheap shares and then embarked on a plan to create the false appearance of investor interest by sending out promotional material and trading shares among one another.
In response to the SEC complaint, Jamani has denied all of the allegations, which remain unproven before the U.S. court.
The SEC is demanding a jury trial and seeking market participation bans against Jamani, repayment orders and monetary penalties.
Jamani was subject of a Vancouver Police Department investigation in an alleged bribery scheme involving Novori Inc., a Surrey-based company that traded on the OTC market, the reported in 2008. Jamani was reported as a certified management accountant at the time, however no charges were laid against him.
BIV reached out to Jamani’s counsel last week for an opportunity to comment on the proceedings against him but did not receive a response by publication time.
