Cease trade order and freeze order against Oversea Chinese Fund Limited Partnership, Weizhen Tang and Associates Inc., Weizhen Tang Corporation and Weizhen Tang

Decisions and Freeze and cease trade orders Securities

Montréal – At the request of the Autorité des marchés financiers (AMF), the Bureau de décision et de révision en valeurs mobilières (BDRVM) issued a reciprocal order on April 14, 2009 whereby Oversea Chinese Fund Limited Partnership, Weizhen Tang and Associates Inc., Weizhen Tang Corporation and Weizhen Tang, their officers, representatives and directors, must cease any activity, directly, indirectly or via the Internet, in respect of a transaction in securities and are denied the benefit of any exemption contained in the Securities Act.

The BDRVM also issued a freeze order whereby the firms and individuals mentioned above may not withdraw funds, securities or other assets held by Interactive Broker on deposit, under control or in safekeeping. As well, Interactive Broker may not dispose of the funds, securities or other assets it holds on deposit, under control or in safekeeping on behalf of the firms and individuals mentioned previously.

In March 2009, the Ontario Securities Commission issued an order against Oversea Chinese Fund Limited Partnership, Weizhen Tang and Associates Inc., Weizhen Tang Corporation and Weizhen Tang whereby these firms and individuals were prohibited from all trading, denied the benefit of any exemptions and placed under a freeze order.

In its decision, the BDRVM stated the grounds for its decision:

  • Illegal distributions amounted to millions of dollars;
  • The respondents were not registered as securities dealers or advisers;
  • No approved prospectus was issued and no prospectus exemption was available;
  • Some investors were unable to recover their funds;
  • Misrepresentations were posted on a website;
  • A Ponzi scheme was possibly being run.

Although no evidence was submitted at the hearing that any offence was committed in Québec, the BDRVM determined there was a real risk that illegal activities would spread to Québec since the respondents seemed prepared to operate across Canada and targeted in particular the Chinese community with disregard for applicable securities legislation.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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