Ontario Securities Commission
Ontario Securities Commission
Commission des valeurs mobilières de l’Ontario
22nd Floor 20 Queen Street West Toronto ON M5H 3S8
22e étage 20, rue Queen Ouest Toronto ON M5H 3S8
File No. 2019-14
IN THE MATTER OF WELCOME PLACE INC., DANIEL MAXSOOD also known as MUHAMMAD M. KHAN, TAO ZHANG and TALAT ASHRAF
REASONS AND DECISION
(Section 17 of the Securities Act, RSO 1990, c S.5)
Hearing: In Writing
Decision: April 23, 2019
Panel: M. Cecilia Williams Commissioner and Chair of the Panel
Submissions: Jennifer M. Lynch For Staff of the Commission
TABLE OF CONTENTS
I.......... background. 1 A. Facts. 1 II......... analysis. 1 III....... Conclusion. 2
REASONS AND DECISION
I. background
1Enforcement Staff of the Ontario Securities Commission (Staff) apply for Orders that:
a. The application is to be heard in writing pursuant to section 5.1 of the Statutory Powers Procedure Act, RSO 1990, c S.22 (the SPPA) and Rules 12(2) and 23(2) of the Ontario Securities Commission Rules of Procedure and Forms (the Rules of Procedure);
b. Staff are authorized, pursuant to subsection 17(1)(b) of the Securities Act, RSO 1990, c S.5 (the Act), to provide certain radio advertisements, interviews and related transcripts (the Requested Records) to the Ministry of the Attorney General’s Civil Remedies for Illicit Activities Office (CRIA); and
c. Such disclosure is authorized to be made without notice and without opportunity to be heard pursuant to subsection 17(2.1) of the Act.
A. Facts
2The matter relates to a fraudulent scheme carried out by the Respondents in which more than $5.2 million was raised from investors.
3Pursuant to a settlement agreement dated February 10, 2016, the Commission collected $932,881.74 (the Funds).
4Staff recommended, and the Vice Chairs have approved, that the Funds be allocated to investors and that the distribution be carried out by CRIA.
5On December 14, 2016, the Commission issued a section 17 order in this matter with respect to other compelled documents that were requested by CRIA for the claims and distribution of the Funds to Welcome Place investors. The application was made in writing and was without notice to the Respondents or investors.
II. analysis
6CRIA requires information in the Requested Records to provide notice to Welcome Place investors about the claims and distribution process for returning the Funds. CRIA intends to provide notice on the same radio station that Daniel Maxsood and Welcome Place used to solicit investors.
7There is no doubt that it is in the public interest for CRIA to be able to distribute the Funds efficiently and effectively to Welcome Place investors. The Requested Records will allow CRIA to communicate the claims and distribution process through the same communication channels used to solicit investors.
8Subsection 17(2.1) of the Act authorizes disclosure of the items under subsection 17(1) to any entity referred to in paragraphs 1, 3, 4 or 5 of section 153, without notice to or an opportunity to be heard if it is in the public interest to make such disclosure. Neither the Respondents