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The founders of a defunct Calgary-based investment company have paid nearly $800,000 in fines after admitting to breaching Alberta securities laws.
Jay Modi, Arti Modi, and Rajeeve Singh incorporated OmniArch Capital Corporation in 2009 for the purpose of soliciting, accumulating and using investment funds for indirect investment into downgraded and discounted residential mortage-backed securities in the U.S. Between 2010 and 2015, OmniArch raised about $127 million from investors before going into CCAA creditor protection in 2016.
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In a settlement reached with the Alberta Securities Commission earlier this month, all three of OmniArch’s founders admitted to breaching Alberta securities laws by making misleading statements to investors. Investors were not told, for example, that OmniArch would make loans to related parties. Investors were also misled as to the professional experience of Jay Modi and OmniArch’s fund managers in handling investments.
