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by Mike Caswell

The Ontario Securities Commission has imposed a permanent ban and $2.17-million in financial sanctions against Toronto's Usman Asif and two entities that he controls for a five-year fraud that targeted Pakistani investors. The OSC says that Mr. Asif raised $3-million from investors while telling them that he would trade on their behalf. Instead, he used money from new investors to pay purported returns to earlier investors in Ponzi fashion, while spending investor money on real estate and other personal items, the OSC claims.

The penalties for Mr. Asif are contained in a decision that the OSC released on June 3, 2024. The regulator has permanently banned Mr. Asif from trading, acting as a fund manager or promoter, and from acting as an officer or director. The financial penalties include administrative penalties totalling $1.13-million, disgorgement of $730,077 in gains and payment of $295,413 in hearing costs.

The sanctions arise from a scheme that the OSC accused Mr. Asif of running from October, 2016, to December, 2021, in which he defrauded at least 80 investors. He targeted the Pakistani community through a student association at Ryerson University, promising them monthly returns of 2 to 5 per cent, according to the OSC. He promoted the scheme through Facebook, Youtube and radio ads, the OSC said.

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