CALGARY, June 5, 2019 /CNW/ - The Alberta Securities Commission (ASC) has found that Brian Arthur Kitts and Vesta Capcorp Inc. breached Alberta securities laws.
The respondents raised approximately $4.3 million and US$850,000 from approximately 38 investors between February 2014 and June 2015. An ASC panel determined that the respondents engaged in prohibited acts, including:
- falsely misrepresenting to prospective Vesta investors that invested funds would be used to provide short-term financing to real estate industry participants;
- diverting invested funds to business ventures that were not identified or otherwise within the reasonable expectation of Vesta investors;
- misappropriating investor funds to the personal use of Kitts and his spouse; and
- using investors' capital to repay principal and to pay imaginary profits to investors.
In issuing its decision, the panel stated "Kitts (and through him, Vesta) operated an unsophisticated Ponzi scheme, while diverting investors' capital for personal and other unauthorized uses."
This proceeding will now move into a second phase to determine what (if any) orders for sanctions and costs ought to be made against Kitts and Vesta. A schedule of deadlines for written and oral submissions for this phase can be found in the decision, which is available on the ASC website at albertasecurities.com.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect 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, Communications Manager, 403-592-8186; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488