Friday, April 11, 2014

AG refers FCB shares matter to DPP, CoP

Phillip Rahman
Attorney General Anand Ramlogan said on Thursday he has referred to the Director of Public Prosecutions (DPP) and acting Commissioner of Police the matter of the purchase of 659,588 shares from First Citizens' Bank's initial public offering (IPO) by the bank's former chief risk officer Philip Rahaman.

Finance Minister Larry Howai commissioned a report on the matter in February and when he got it, the minister referred it to the AG. 

Speaking Thursday at the post cabinet media briefing Ramlogan said he referred the PricewaterhouseCoopers report for the DPP and police chief to consider whether there is justification to lay several criminal charges, arising out of violations of the Securities Act.

He also stated that he would ask the Securities and Exchange Commission (SEC) to ensure that there is fair and equitable dealings in securities and the protection of the integrity of the securities market "against any abuses arising from market manipulation practices and improper practices”.

Ramlogan said the SEC should investigate possible breaches under Section 91, 94 and 95. A person who is convicted of an offence under these sections can be jailed for five years and fined $2 million. Sections 100-101 deal with insider trading and carry a fine of $5 million and seven years in prison.

Ramlogan said the issue is not the purchase of a large number of shares. “If Rahaman had purchased his shares for his own right, no issue could arise. And any employee would be free to do that. The issue is whether non-employees were able to access a shares category that was reserved expressly for employees,” he said. He noted that an employee could buy any number of shares.

He explained that First Citizens chief executive Larry Nath bought 215,000 stock units. "In relation to Nath’s purchase, his application was submitted through the lead broker and was in conformity with the requirements of the prospectus. His purchase was financed by loans from Scotiabank and First Citizens." Ramlogan said.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai