B.C. man costs investors millions with fraudulent investment schemes



    VANCOUVER, April 27 /CNW/ - The British Columbia Securities Commission
has found that a White Rock man contravened numerous sections of the
Securities Act while promoting two investment schemes to people in Canada and
other countries.
    Between January 2000 and November 2004, Brian David Anderson contravened
the Securities Act while promoting two investments, Frontier Assets and the
Alpha Program. A commission panel ruled that Anderson perpetrated a fraud,
made misrepresentations, and distributed securities illegally in his efforts
to promote these investments.
    Anderson lived and worked in British Columbia while conducting the
majority of this investment activity. He raised approximately $14.7 million
from 352 investors, 57 of whom were residents of B.C. while promoting Frontier
Assets and the Alpha Program.
    Anderson held out Frontier as a separate company, but in fact it was just
a name he used to promote the investment. Anderson promised investors that he
would invest their funds in businesses, commodities and financial instruments.
Instead, he used the funds of new investors to pay interest to previous
investors.
    The panel found that many of the statements Anderson made to Frontier
investors were misrepresentations.
    In total, 242 people - 41 from B.C. - invested about $7.7 million in
Frontier. The panel found it is unlikely that the money will be repaid.
Anderson kept between $40,000 and $50,000 for himself.
    Anderson also created and operated the Alpha Program, an investment
scheme in which investors purchased units of "desks" that were purportedly
part of a new commodity exchange called Flat Electronic Data Interchange
(FEDI).
    Anderson did not invest any of his own money in FEDI, which never
commenced operations. The panel found Anderson disbursed about US$3.6 million
of investors' money on things other than FEDI, and that many of the statements
he made to Alpha Program investors were misrepresentations.
    Through the Alpha Program, Anderson raised more than $7 million from
100 investors, 16 of whom were B.C. residents. Most of this money is still
outstanding, and there is no evidence it will be repaid.
    The Panel will review submissions from the parties before it makes its
decision on sanctions.

    The B.C. Securities Commission is the independent provincial government
agency responsible for regulating trading in securities within the province.
You may view the decision/settlement on our website www.bcsc.bc.ca by typing
in the search box, Brian David Anderson or 2007 BCSECCOM 198. If you have
questions, contact Andrew Poon, Media Relations, 604-899-6880.





For further information:

For further information: Andrew Poon, (604) 899-6880 or (B.C. & Alberta)
1-800-373-6393


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890