CALGARY, June 28, 2018 /CNW/ - The Alberta Securities Commission (ASC) has issued a Notice of Hearing against the Lutheran Church-Canada, the Alberta-British Columbia District (the District) and others in connection with a long-running investment program that collapsed into insolvency in early 2015. According to the Notice of Hearing, over $130 million had been invested into two of the church's funds when the organizations were placed into federal bankruptcy protection.
ASC staff allege that the District, a related company, and five of its key officers and directors knew or ought to have known that statements made to investors were misleading because they failed to include important information about how investors' money was being used and the risks arising from that use. According to ASC staff, the majority of the invested funds were loaned in support of a multi-dimension seniors' project east of Calgary known as Encharis, but investors were never told important facts such as the high concentration of funds going into this one project, the persistent loan defaults, or the cash-flow problems.
The ASC Notice of Hearing focuses on alleged breaches of Alberta securities laws, and is not intended to determine civil liability. The Notice of Hearing does specify, however, that the ASC will not seek monetary administrative penalties against the corporate respondents, so as not to diminish any pool of money that might otherwise be available for investors in the federal bankruptcy proceedings.
The allegations have not been proven.
An appearance to set a date for a hearing will be held on August 13, 2018 at 10:30 am 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