CALGARY, Aug. 22, 2016 /CNW/ - Alberta Securities Commission (ASC) staff have issued a Notice of Hearing against Arnold Breitkreutz, Susan Elizabeth Way, Base Finance Ltd. (Base Finance) and Base Mortgage & Investments Ltd. in connection with the sale of securities in Base Finance. According to the Notice of Hearing, $83.5 million was raised from Base Finance investors between January 1, 2011 and September 1, 2015.
ASC staff allege that Breitkreutz and Way perpetrated a fraud on investors by using new investors' funds to pay interest and principal owing to existing investors in a manner consistent with a Ponzi scheme.
Breitkreutz is also alleged to have made misleading statements to ASC staff while under oath during the investigation.
These allegations have not been proven.
In November 2015, the ASC issued an Interim Order that continues to remain in effect until proceedings have concluded.
An appearance to set a date for a hearing will be held on October 19, 2016 at 1:00 p.m. in the ASC Hearing Room on the 5th floor, 250 – 5 Street S.W., Calgary, Alberta.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting 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 Media Inquiries: Alison Trollope, Director, Communications & Investor Education, 403.297.2664; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488