News Releases
ASC alleges Calgarians engaged in fraudulent pump and dump scheme
Feb 08, 2018
CALGARY - February 7, 2018 – The Alberta Securities Commission (ASC) has issued a Notice of Hearing against businessmen Jim Can and Charles Miller as well as lawyer Norman Anderson and former mutual fund salesperson Farhang Nikoo, alleging they carried out a fraudulent pump and dump scheme involving the shares of OTC Bulletin Board quoted Bluforest Inc. Bluforest saw its market capitalization peak at almost $200 million USD, despite having no business operations, employees, or income.
ASC staff allege that Jim Can was the mastermind of the scheme, secretly directing and controlling Bluforest through the use of nominees and offshore companies and brokerages, located primarily in Belize. He generated and controlled millions of free trading shares of Bluforest, orchestrated a promotional campaign to drive up the price and volume of its shares (pump), and then sold shares into the unsuspecting market (dump). Miller, Nikoo and Anderson allegedly participated in the scheme in varying degrees through such actions as selling shares, making misleading representations, and facilitating fictitious debt and secrecy of control of Bluforest.
Albertans were sold shares of Bluforest in the pump phase following false statements by Nikoo, Miller and Can, including that the shares would be listed on NASDAQ and would double in value.
The allegations have not been proven.
An appearance to set a date for a hearing will be held on March 14, 2018 at 3:00 p.m. in the ASC Hearing Room on the 5th floor, 250 – 5 Street SW, Calgary, Alberta.
The ASC gratefully acknowledges the assistance of the British Columbia Securities Commission, the Royal Canadian Mounted Police, the U.S. Securities and Exchange Commission, the Federal Bureau of Investigation, the Financial Industry Regulatory Authority and the Superintendencia de Compañías, Valores y Seguros of Ecuador.
A copy of the Notice of Hearing can be found on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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For further information please contact:
For Media Inquiries:
Hilary McMeekin
Communications Manager
403-592-8186
ASC Public Inquiries
Toll Free: 1-877-355-4488
inquiries@asc.ca