ASC alleges Proforma Capital Inc. and related parties breached Alberta securities laws

CALGARY, Jan. 24, 2017 /CNW/ - Alberta Securities Commission (ASC) staff have issued a Notice of Hearing against Robert Joseph Frost, Joseph Antonio Francese, Scott Anthony Reed, Proforma Capital Bond (II) Corporation (PCBC II), and Proforma Capital Inc. in connection with the sale of securities in PCBC II referred to as "Profit Notes."

ASC Staff allege that the respondents perpetrated a fraud on investors by deceiving them about the ultimate use of their funds and by false promises of insurance protection for their investments. Staff also allege that the respondents made misleading or untrue statements to investors, and failed to disclose material information that was necessary to make the statements not misleading. These misrepresentations related to the nature and degree of risk assumed by investors, and were contained in offering memoranda, promotional materials, salesperson training materials, and in dealings with investors.

According to the Notice of Hearing, approximately $30 million was raised from PCBC II investors between February 26, 2011 and January 24, 2012.

The allegations have not been proven.

An appearance to set a date for a hearing will be held on April 19, 2017 at 12:00 p.m. in the ASC Hearing Room on the 5th floor, 250 – 5 Street S.W., Calgary, Alberta.

A copy of the Notice of Hearing can be found on the ASC website at

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: Nicole Tuncay, Senior Communications Advisor, 403.297.4008; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488


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