CALGARY, Aug. 4, 2017 /CNW/ - Alberta Securities Commission (ASC) staff have issued a Notice of Hearing alleging that Brian Arthur Kitts and Vesta Capcorp Inc. engaged in a course of conduct which they knew, or ought to have known, perpetrated a fraud on investors. According to the Notice of Hearing:
- Kitts was the guiding mind of Vesta, a company that had a head office in Bragg Creek, Alberta.
- Vesta raised approximately $5.3 million from 20 investors.
- The money was supposed to be used to finance real estate developers or other companies or persons in the real estate industry.
- Instead, approximately $3.3 million was used to pay principal and returns owing to existing investors in a manner consistent with a ponzi scheme. The other approximately $2 million was utilized by Kitts, mainly for his personal use.
The allegations have not been proven.
An appearance to set a date for a hearing will be held on September 13, 2017 at 2:30 p.m. in the ASC Hearing Room on the 5th floor, 250 – 5 Street SW, 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: Hilary McMeekin, Manager, Communications, 403.592.8186; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488