News Release

ASC sanctions Ashmit Patel, Zulfikar Rashid and Kilimanjaro Capital Ltd. for market manipulation

Aug 18, 2021

CALGARY – August 18, 2021 – The Alberta Securities Commission (ASC) has sanctioned Ashmit Patel, Zulfikar Rashid and Kilimanjaro Capital Ltd. (now known as N1 Technologies Inc.) for breaching Alberta securities laws.

An ASC panel previously determined that Patel, Rashid and Kilimanjaro engaged in conduct that contributed to an artificial price for Kilimanjaro shares and that Patel also contributed to a misleading appearance of trading in Kilimanjaro shares. Their misconduct related to a market manipulation scheme that was carried out over a period of several months, during which Patel covertly exerted control over virtually all aspects of a pump and dump scheme while using Rashid as his nominee. The ASC panel also found that Patel and Kilimanjaro violated a cease-trade order and that Rashid made untrue statements to ASC investigators.

In its sanction decision, the ASC panel ordered that:

  • Patel pay an administrative penalty of $450,000, disgorgement of $117,400 and costs of $120,000, that he resign all positions he holds as a director or officer of any issuer or registrant and that he is subject to an array of permanent market bans;
  • Rashid pay an administrative penalty of $75,000 and costs of $30,000, that he resign all positions he holds as a director or officer of any issuer or registrant, that he is prohibited from becoming or acting as a director or officer (or both) of any issuer or registrant for a period of 10 years, and that he is subject to an array of other market bans for a period of 8 years; and,
  • with permanent effect, all trading in or purchasing of securities or derivatives of Kilimanjaro must cease and that Kilimanjaro cease trading in or purchasing securities.

In its decision, the panel noted that “Patel’s misconduct was an egregious breach of Alberta securities laws, done with planning and deliberation, and caused significant harm to investors and undermined confidence in the capital market" and that he “cannot be trusted to again participate in the capital market.”

A copy of the sanctions decision is available on the ASC website at albertasecurities.com.

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.

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