On January 16, 2013 we posted a blog called Global RESP Rocked by Scandal. In it we reported “Global RESP Corporation, one of the largest Canadian Registered Education Savings Plan providers with 110,000 enrolled children and $460 Million of assets under administration,

is rocked by scandal! Sam Bouji, chairman and CEO of Global RESP has been accused by the Ontario Securities Commission of directing Global RESP to buy $30 Million of notes of a small bank in London, Ontario called Pacific and Western Bank of Canada and personally earning $2-million in finder’s fees and commissions for the deal. The fees were paid to a private company owned by Mr. Bouji called Global Maxfin Capital Inc.”

At long last the Ontario Securities commission has completed its investigation and hearings and has issued its ruling. Mr. Bouji, Global’s CEO has been removed by the OSC and prohibited from having any involvement with Global RESP. Punitive damages and penalties have also been imposed as a result of non-compliance and other regulatory infractions which you can read in their entirety below.

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

– AND –

IN THE MATTER OF ISSAM EL-BOUJI, GLOBAL RESP CORPORATION, GLOBAL GROWTH ASSETS INC., GLOBAL EDUCATIONAL TRUST FOUNDATION AND MARGARET SINGH

i) Bouji will resign as a director of the Foundation, and as a director of any registrant or investment fund manager within the earlier of: (i) 60 days from the date of this order; or (ii) the appointment of an independent board of directors to the entity;

j) Bouji will resign as an officer of the Foundation and as an officer of any registrant or investment fund manager, upon the earlier of: (i) nine months from the date of this order; or (ii) the appointment of a new independent CEO for the entity;

k) Bouji is prohibited from becoming or acting as a director or officer of any reporting issuer, registrant, investment fund manager or from acting as a director or officer of the Foundation for nine years, except as permitted in sub paragraphs 50(i) and (j) above;

l) Upon the earlier of: (i) nine months from the date of this order; or (ii) the appointment of a new UDP for GGAI and Global RESP, Bouji is permanently prohibited from becoming or acting as a UDP or CCO of any registrant or investment fund manager;

m) Bouji shall disgorge to the Commission $1,950,575.34 obtained as a result of non-compliance with Ontario securities law, which is designated for allocation to or for the benefit of third parties (including, where practicable, for the benefit of subscribers or beneficiaries of the Plan) or for use by the Commission for the purpose of educating investors or promoting or otherwise enhancing knowledge and information of persons regarding the operation of the securities and financial markets, in accordance with subsection 3.4(2)(b) of the Act, in equal quarterly instalments over a five year period with the first payment to commence on the 90th day after the date of this order;

n) Bouji, GGAI and Global RESP shall pay, on a joint and several basis, an administrative penalty in the amount of $150,000 to be paid by way of a certified cheque to be delivered to Staff before the commencement of the Settlement Hearing, for allocation in accordance with subsection 3.4(2)(b) of the Act;

o) Bouji, GGAI and Global RESP shall pay, on a joint and several basis, costs of the Commission’s investigation in the amount of $75,000 to be paid by way of a certified cheque to be delivered to Staff before the commencement of the Settlement Hearing;

p) GGAI and the Foundation shall record in their books and records the Foundation’s mandatory obligation to repay enrolment fees in respect of plans purchased by unit holders pursuant to the 2002 to 2004 Prospectuses; and

q) Global RESP and GGAI will provide the OSC Manager with a report by the Consultant as defined in Schedule “B”, based on a work plan to be agreed upon jointly by Global RESP, GGAI, the Consultant and the OSC Manager, by no later than 14 months after the date that the terms and conditions imposed on Global RESP and GGAI’s registration (the “Terms and Conditions”) by temporary order of the Commission dated.

July 26, 2012 (the “Temporary Order”) are fully vacated by Commission order. The Consultant will assess whether the revised policies and procedures and internal controls set out in the Consultant’s Plan and the Amendments as defined in Schedule “B” are: (i) being followed by Global RESP and GGAI (ii) working appropriately; and (iii) being adequately administered and enforced by Global RESP and GGAI. The Consultant will prepare a report which includes a description of the Consultant’s testing to support its conclusions for the 12 month period ending 14 months after the Terms and Conditions imposed by the Temporary Order are vacated.

51. The Respondents undertake to consent to a regulatory order made by any provincial or territorial securities regulatory authority in Canada containing any or all of the sanctions set out in paragraph 50, above.

The prohibitions may be modified to reflect the provisions of the relevant provincial or territorial securities laws.

Be very careful when investing your hard earned money for your children’s futures. As you can see by the Global RESP company scandal, Group RESP dealers are not financial services companies that are strictly regulated by the government. Don’t gamble with your family’s future. Choose investments that are safe, reliable and regulated. Contact Insurance for Children to learn about our variety of customized insurance products has been used by Canadian parents to save for their children’s futures for over 100 years because they are secure, stable and safe, long term investments. The insurance industry is strictly regulated by the federal government of Canada, whose chief responsibility is to guarantee its financial security. You can invest for your children’s futures with complete peace of mind.