ASC finds that Nicholas David Reeves perpetrated a fraud on Alberta investors

CALGARY, Dec. 17 /CNW/ - The Alberta Securities Commission (ASC) has found that Nicholas David Reeves violated Alberta securities laws by illegally distributing securities in Alberta, by making a misrepresentation to at least one Alberta investor and by perpetrating a fraud on Alberta investors.

An ASC panel found that "Reeves engaged in the most serious of securities regulatory misconduct - fraud.  Reeves lied to investors, misappropriated their money intended to be invested as venture capital in start-up entities and converted that money to his own use."

The ASC panel's findings were based on, among other things, Reeves' admissions that he converted to his own use the money he received from at least 10 investors. Reeves also admitted to making a misrepresentation by promising at least one investor that they would receive returns of 100 per cent to over 300 per cent per year on their investment. Reeves further admitted that his actions have caused direct losses to investors of not less than $500,000.  

The ASC panel has set dates in January and February 2011 for ASC staff and Reeves to provide submissions on what, if any, orders the panel should make against Reeves. 

A copy of the Merits Decision can be found 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 markets.


SOURCE Alberta Securities Commission

For further information: For further information:

For Media Inquiries: 

Mark Dickey
Senior Communications Advisor
403.297.4481
   
For Investor Inquiries: 
ASC Public Inquiries
Toll Free 1.877.355.4488


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