ASC alleges market manipulation scheme of Softlab9 Software Solutions Inc. shares

CALGARY, AB, April 9, 2024 /CNW/ - The Alberta Securities Commission (ASC) has issued a Notice of Hearing against Calgary residents Rahim Shiraz A-K Mohamed (a.k.a. Rahim Shiraz Ali Abdul Karim Karmali Mohamed) and Alnoor Fatehali Nathoo, and British Columbia residents Marc Evan Levy and Michael Baron. The Notice of Hearing alleges that the group engaged in a market manipulation scheme and committed insider reporting violations in breach of Alberta securities laws.

According to the Notice of Hearing, from March 2019 to November 2020, the group used their own trading accounts, as well as other accounts they controlled, to trade in shares of Softlab9 Software Solutions Inc. (Softlab), which subsequently became Softlab9 Technologies Inc., and is now known as CleanGo Innovations Inc. At the time of the alleged misconduct, Mohamed was the CEO of Softlab and Nathoo was one of its directors. ASC Staff allege the group engaged in a pattern of trading that involved market manipulation hallmarks of upticks, downticks, high closes, wash trades and bid support. These activities resulted in, or contributed to, a false or misleading appearance of trading activity or an artificial price for Softlab securities.

The Notice of Hearing also alleges that the parties failed to comply with insider reporting obligations, and that Levy also failed to comply with the early warning requirements triggered when he directly or indirectly accumulated over 10 per cent of Softlab's outstanding shares.  

These are allegations and have not been proven in a hearing.

An appearance to set a date for a hearing will be held on May 21, 2024 at 10 a.m. in the ASC Hearing Room on the 5th floor, 250 ? 5 Street S.W., Calgary, Alberta.

A copy of the Notice of Hearing can be found on the ASC website.

The ASC gratefully acknowledges the assistance of the British Columbia Securities Commission, Autorité des marchés financiers, Canadian Investment Regulatory Organization (CIRO), Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and Financial Industry Regulatory Authority (FINRA).

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission