Temporary Order: In the Matter of Welcome Place Inc. et al.

Order
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IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5, AS AMENDED

- AND -

IN THE MATTER OF WELCOME PLACE INC., DANIEL MAXSOOD also known as MUHAMMAD M. KHAN, TAO ZHANG, and TALAT ASHRAF

TEMPORARY ORDER
Subsections 127(1) and 127(5)

 

 

    WHEREAS it appears to the Ontario Securities Commission (the “Commission”) that:

 

 

  1. Welcome Place Inc. (“Welcome Place”) is a Canadian corporation with a business address in Ontario;
  2. Daniel Maxsood also known as Muhammad M. Khan (“Maxsood”) is an Ontario resident and the sole director of Welcome Place;
  3. Tao Zhang (“Zhang”) is an Ontario resident, the spouse of Maxsood, and is a representative of Welcome Place;
  4. Talat Ashraf (“Ashraf”) is an Ontario resident, and is a representative of Welcome Place;
  5. Welcome Place, Maxsood, and Ashraf may have engaged in or held themselves out as engaging in the business of trading in securities without being registered in accordance with Ontario securities law and without an exemption from the registration requirement contrary to subsection 25(1) of the Securities Act, R.S.O., c. S.5, 1990, as amended (the "Act") and National Instrument 31-103 – Registration Requirements, Exemptions, and Ongoing Registration Obligations;
  6. Welcome Place, Maxsood, or Ashraf may have engaged in or held themselves out to be engaged in the business of advising anyone with respect to investing in, buying or selling securities without being registered in accordance with Ontario securities law and without an exemption from the registration requirement contrary to subsection 25(3) of the Act;
  7. None of Welcome Place, Maxsood, Zhang, or Ashraf (collectively, the “Respondents”) are registered in accordance with Ontario securities law as a dealer or are exempt under Ontario securities law from the requirement to comply with subsection 25(1) of the Act;
  8. Welcome Place, Maxsood, or Ashraf may have made statements that are untrue or statements that omit information necessary to prevent the statement from being false or misleading and that a reasonable investor would consider relevant in deciding whether to enter into or maintain a trading or advising relationship with the person or company contrary to subsection 44(2) of the Act;
  9. Welcome Place, Maxsood, or Ashraf may have traded securities that were a distribution without a prospectus having been filed with the Director and without the exemption from the prospectus requirement contrary to subsection 53(1) of the Act;
  10. Welcome Place is not a reporting issuer. No prospectus receipt has been issued with respect to Welcome Place;
  11. The Respondents may have engaged in or participated in any act, practice or course of conduct relating to securities that the Respondents knew or reasonably ought to know perpetrates a fraud on any person or company contrary to section 126.1 of the Act;
  12. Maxsood and Ashraf may have authorized, permitted or acquiesced in the noncompliance with the Act by Welcome Place contrary to section 129.2 of the Act;
  13. Staff is continuing to investigate the conduct described above;

    AND WHEREAS the Commission is of the opinion that the time required to conclude a hearing could be prejudicial to the public interest as set out in subsection 127(5) of the Act;

    AND WHEREAS the Commission is of the opinion that it is in the public interest to make this Order;

    AND WHEREAS by Authorization Order made April 12, 2013, pursuant to subsection 3.5(3) of the Act, any one of Howard I. Wetston, James E. A. Turner, Mary G. Condon, James D. Carnwath, Edward P. Kerwin, Vern Krishna, Alan J. Lenczner, Christopher Portner, and C. Wesley M. Scott, acting alone, is authorized to make orders under section 127 of the Act;

    IT IS ORDERED, pursuant to clause 2 of subsection 127(1) of the Act, that:

(a) all trading in any securities by Welcome Place shall cease;

(b) all trading in any securities by Maxsood shall cease;

(c) all trading in any securities by Zhang shall cease; and

(d) all trading in any securities by Ashraf shall cease.

    IT IS FURTHER ORDERED that pursuant to clause 3 of subsection 127(1) of the Act, that any exemptions contained in Ontario securities law do not apply to any of the Respondents; and

    IT IS FURTHER ORDERED that pursuant to subsection 127(6) of the Act, this Order shall take effect immediately and shall expire on the 15th day after its making unless extended by Order of the Commission.

 

    DATED at Toronto this 2nd day of July, 2013.

 

 

 

" Mary G. Condon "
Mary G. Condon