The Alberta Securities Commission has sanctioned former Softlab9 director Alnoor Fatehali Nathoo after he admitted to manipulating share prices and failing to disclose securities transactions as required by law.

The Alberta Securities Commission (ASC) has reached a settlement with Calgary resident Alnoor Fatehali Nathoo over violations of provincial securities legislation involving market manipulation and insider reporting. Nathoo, who served as a director of Softlab9 Software Solutions Inc. between October 2019 and September 2022, admitted to participating in trading activities designed to distort the company’s share price. Under the settlement announced October 15, 2026, he agreed to pay $105,000, including $20,000 in investigation costs, and accept an eight-year prohibition on several investment market activities.

Between February and November 2020, Nathoo coordinated transactions with other individuals to create misleading impressions of demand for Softlab shares, which traded on the Canadian Securities Exchange. Investigators determined that he used personal trading accounts and an account registered to his spouse, over which he exercised control and held beneficial ownership.

The coordinated activity involved techniques known as uptick trading and bid support, which can artificially increase share prices and make securities appear more actively traded than genuine market conditions would support. Nathoo acknowledged that he knew his conduct could contribute to misleading trading activity and an artificial market price.

Regulators also identified failures involving Nathoo’s obligations as a corporate insider. As a director of Softlab, he was required to disclose certain securities holdings and transactions through insider reports. However, he did not report shares acquired from another company director in November 2019 or additional Softlab shares purchased through his spouse’s account. These omissions prevented the required disclosures from being made to the market. Nathoo admitted that both reporting failures breached Alberta securities laws.

The settlement requires Nathoo to resign from any director or officer positions he holds with reporting issuers. For eight years, he cannot serve as a director or officer, participate in investor relations activities, or hold management positions connected to capital markets. He is also prohibited from buying or trading securities and derivatives during that period, subject to limited exceptions. The restrictions are intended to prevent further conduct that could undermine market transparency and investor confidence.

Nathoo was among the respondents named in an ASC enforcement proceeding initiated in April 2024. Another respondent, Michael Baron, reached a separate settlement with the regulator in June 2025 concerning manipulation of Softlab shares, while proceedings against the remaining respondent are continuing. The ASC acknowledged assistance from several Canadian and international regulatory and financial intelligence organizations, including the British Columbia Securities Commission, Autorité des marchés financiers, Canadian Investment Regulatory Organization, FINTRAC and the U.S. Financial Industry Regulatory Authority. The case highlights the regulatory consequences of coordinated trading activity and failures to meet insider disclosure requirements.

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Originally published on Canadian Fraud News.