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by Mike Caswell

It took many years and many lawyers, but Vancouver promoter Thal Poonian has won a partial legal victory against the B.C. Securities Commission. The Supreme Court of Canada has scaled back a $19-million order that the BCSC imposed against Mr. Poonian and his wife for a 2008 manipulation on the TSX Venture Exchange, finding that $13.5-million in administrative penalties is not collectible. The fines will not survive the couple's pending bankruptcy, the court has ruled.

The ruling comes as part of a case that goes all the way back to 2008. The BCSC pursued the Poonians for the manipulation of OSE Corp., a TSX-V listing that went to $2 amidst prearranged trades. The BCSC found that Mr. Poonian and others made millions selling the stock at inflated prices. The regulator entered orders that resulted in the Poonians owing a combined $19-million in fines and disgorgement.

The BCSC imposed that order in 2014, but has had little success collecting the money, as Mr. Poonian and his wife made an assignment into bankruptcy on April 20, 2018. Their combined debts amounted to $25-million, with nearly all of the money representing their BCSC sanctions and a large tax bill. The claimed that they were "honest but unfortunate debtors" and asked for an absolute discharge, or "fresh start." The BCSC and the Minister of National Revenue opposed their discharge, arguing that the Poonians were unrepentant market manipulators and tax cheats.

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