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by Mike Caswell

The Alberta Securities Commission has found that Calgary's Shahin "Sonny" Mottahed perpetrated a fraud on investors when he diverted $2.3-million worth of money from TSX Venture Exchange listing Target Capital Inc. in 2020. He carried out a "rapid and extensive cash depletion" while concealing his actions from shareholders and the company's board, the ASC has determined. His actions deprived Target's shareholders of benefits that could have included potential acquisitions, according to the ASC.

The finding is contained in an administrative decision that the ASC released on Wednesday, Oct. 7. The decision applies solely to Mr. Mottahed, who became the chairman and president of Target Capital in November, 2017. The ruling follows a hearing that the ASC held about a year ago, in September, 2025, at which Mr. Mottahed represented himself.

The events at issue, as set out by the ASC, go back to late 2019, when Target Capital had $3.2-million in assets, most of which was cash from a financing. According to the ASC, Mr. Mottahed directed transfers of the company's money to an entity called Performance CBD Brands Corp., which had Mr. Mottahed as its majority shareholder and sole director. He also used Target Capital's money to pay invoices on behalf of Performance CBD, the ASC said.

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