Service NL says she is advertising an illegal investment opportunity
The owner of a business government says is operating illegally says as far as she is aware, everything she's doing is perfectly legal.
© Joe Gibbons/The Telegram
Frenchy’s Thrift Boutique owner Israt Khan.
"I'm not trading in securities," Israt Khan told The Telegram Friday evening.
Khan said she has sent an email request to Service NL for clarification on a media release about her business that the provincial government department released Friday afternoon.
The release said Khan's business, Bambi Land Inc, was trading in securities and soliciting people to invest money via social media and in an advertisement in The Telegram. Neither the business name nor Khan have ever been registered under the Securities Act to solicit or trade securities here, government said.
The Bambi Land Inc. Facebook page tells readers, "Double your money with me in 5 months. That's right. Minimum admin fees applies (sic) and will be deducted at the end."
"Invest $5,000 and get back $6,000 after 4 months. $100 admin fees and $150 legal fees applied," says another post, providing a phone number.
In Friday's Telegram, Khan placed an ad for Bambi Land as well as Frenchy's Thrift Boutique, her Torbay Road store. Other services in the ad included henna art, nails and cellphone repair.
"As they are unregistered entities, Bambi Land Inc. and Israt Khan are prohibited from acting, advertising, soliciting, conducting or negotiating directly or indirectly in furtherance of the trade of securities in the province of Newfoundland and Labrador," Service NL's statement read.
The department is advising anyone who has already invested money to contact the Financial Services Regulation Division at 729-2596.
Khan said her business name is registered with the province, and provided The Telegram with the registration number. She said she has never been informed of any outstanding requirements, and had contacted her bank and her accountant along with the government for more information after the media release was issued.
"My bank said they have no knowledge of any extra requirements I would need," she said, adding she has no problem complying with whatever Service NL needs.
The RNC has not responded to requests from The Telegram over the past month for comment on the legality of Bambi Land Inc.
Khan was in the news in mid-December, after members of a Facebook group called Boycott Frenchy's alleged she posted threatening messages to them and mistreated employees. Khan, in response, said someone had framed her for the threats by making a fake Facebook profile with her name.
Service NL is advising the public to research investment opportunities before participating in them. Registrations can be checked by visiting the Canadian Securities Administration website at www.securities-administrators.ca and clicking on "National Registration Search." If the company or person is not registered, people are asked notify Service NL.