CALGARY, May 13, 2013 /CNW/ - The Alberta Securities Commission (ASC)
has found that Dale Joseph Edgar St. Jean, Gregory Dennis Tindall and their Calgary-based companies, TransCap Corporation and Strata-Trade
Corporation, breached Alberta securities laws and acted contrary to the
public interest by making material misleading or untrue statements to
investors and perpetrating a fraud on Alberta investors.
An ASC panel also ruled that St. Jean and Strata-Trade breached filing
requirements and that Tindall concealed or withheld information
reasonably required for an ASC investigation.
The ASC panel found that payments to TransCap and Strata-Trade investors
were funded from their own and their fellow investors' money, "by
definition, an unsustainable 'Ponzi' scheme". The ASC panel stated:
"Investors (Albertans among them) having been lured by deceptive or
false information into investing in a Ponzi scheme, their pecuniary
interests were placed at serious risk. Indeed, there appears to be no
money remaining to pay them any interest owing or repay their principal
According to the ASC panel's decision, between March 1, 2005 and
December 10, 2009, TransCap and Strata-Trade raised approximately $52
million from investors, who were promised safe investments with
lucrative returns of 15% to 22%.
ASC staff and the named parties have until May 27, 2013 to inform the
ASC panel whether they propose to introduce additional evidence, or to
make submissions, on the issue of what, if any, orders ought to be made
against the named parties.
A copy of the decision can be found on the ASC website at www.albertasecurities.com.
The ASC is the regulatory agency responsible for administering the
province's securities laws. It is entrusted to foster a fair and
efficient capital market in Alberta and to protect investors. As a
member of the Canadian Securities Administrators, the ASC works to
improve, coordinate and harmonize the regulation of Canada's capital
SOURCE: Alberta Securities Commission
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