Well, let us explore that question step by step, shall we?
Here is a section excerpted from the OSC Proceedings, dated 25 May 2011, to which my prior post referred.
[51] The vast majority of these shares were issued to the Nominee Accounts. Staff identified twelve Nominee Accounts in this scheme, of which eight were in Canada and four were in the United States. These accounts were in the names of the Respondents who were nominees (the “Respondent Nominees”) and additional individuals who are not respondents to the proceeding but have admitted to be nominees (the “Non-Respondent Nominees”). They are: DeVries, Shah, Banumas, Sam Sulja, John Sulja, Vladko Sulja, Ayman Haddad, Chad Curtis, Jerry Couvillon, Kamal Ghandour, Mark Triesch, and Kore US. The Respondent Nominees and the Non-Respondent Nominees are collectively referred to as the “Control Group”.
[52] Based on information provided by Transfer Online, of the 589,400,000 shares issued from Sulja Nevada’s treasury during the Material Time, 227,000,000 shares were issued to the Respondent Nominees and 254,500,000 shares were issued to the Non- Respondent Nominees. In total, 481,500,000 shares, more than 81% of the total issue, were issued to the Control Group.
[53] The Control Group sold almost all of the Sulja Nevada shares they received to the market through the Nominee Accounts. Staff provided a Trading Analysis of Sulja Nevada shares based on brokerage firm client data of investors who have traded in Sulja Nevada shares. The Trading Analysis shows the quantity of Sulja Nevada shares that were purchased or sold by the Nominee Accounts during the Material Time and the trading profits realized on each of the trading dates:
• The Respondent Nominees sold 164,515,212 Sulja Nevada shares and purchased 27,892,344 shares. They received a trading profit of US $5,628,559;
• The Non-Respondent Nominees sold 237,659,170 Sulja Nevada shares and purchased 109,449,006 shares. They received a trading profit of US $11,161,428; and
• As a whole, the Control Group sold 402,174,382 Sulja Nevada shares and purchased 137,341,350 shares. They received a total profit of US $16,789,987.
[54] We generally accept Staff’s Trading Analysis of the number of Sulja Nevada shares purchased and sold as well as the profits received during the Material Time.
Do you acknowledge that this is an accurate excerpt from the Proceedings as published by the OSC?
