An Alberta Securities Commission panel has found that Shahin “Sonny” Mottahed breached Alberta securities laws by perpetrating a fraud on investors while serving as CEO of a reporting issuer formerly known as Target Capital Inc. Between Oct. 7, 2019, and Feb. 9, 2021, Mottahed diverted nearly CAD 2.3 million to Performance CBD Brands Corp., a private venture he controlled, without Target’s board knowing or approving the transfers. The funds benefited Performance and its subsidiary, Champions + Legends Corp. Mottahed concealed the diversion by causing Target to issue false or misleading financial statements and news releases, and he provided a false and misleading document to commission staff. A second phase of the proceeding will determine any sanctions and cost recovery orders, with the timing to be set after submissions from the parties.
Alberta Securities Commission finds former Target Capital CEO perpetrated fraud involving nearly CAD 2.3 million
An Alberta Securities Commission panel found that former Target Capital CEO Shahin “Sonny” Mottahed perpetrated fraud by diverting nearly CAD 2.3 million to a private venture he controlled and concealing the transfers through false or misleading disclosures. A second phase will determine any sanctions and cost recovery orders.