Panel finds that Aitkens perpetrated fraud by diverting funds raised from investors to other entities he controlled, among other violations
CALGARY, Feb. 20, 2018 /CNW/ - The Alberta Securities Commission (ASC) has found that Ronald James Aitkens, Roy Juergen Beyer, Foundation Group Capital Trust (the Trust), 0865701 B.C. Ltd. (0865701), Harvest Capital Management Inc. (HCMI), Stoney View Crossing Inc. and Harbour View Landing Inc. breached Alberta securities laws.
Specifically, an ASC panel's findings included that:
- Aitkens, Stoney View Crossing and Harbour View Landing perpetrated a fraud on investors when they caused these companies to misuse money raised from investors by diverting it to other entities with common ownership or management; and
- Aitkens, Beyer, the Trust, 0865701 and HCMI made materially misleading omissions in certain Trust offering memoranda.
In issuing its decision, the panel noted that: "…we conclude that Aitkens knew or ought to have known that the transfers from [Stoney View] Crossing and the [Harbour View] Entities resulted in deprivation to others by placing their pecuniary interests at risk because he knew that such funds were ultimately being used for other projects and purposes, not for the development of the [Stoney View] Land and the [Harbour View] Land. The legitimacy of such other projects and purposes was irrelevant. Aitkens' contention that he did not intend to commit fraud or to have investors lose their money was also irrelevant."
The panel made no findings relating to alleged false certifications of Trust offering memoranda or to alleged provision of false offering memoranda to the ASC. The panel dismissed allegations that Aitkens, Beyer, the Trust, 0865701, HCMI, Foundation Capital Corporation and Foundation Securities Corporation engaged in illegal distributions.
ASC staff had earlier withdrawn allegations against Stoney View Capital Inc. and Harbour View Capital Inc.
This proceeding now moves into a second phase to determine what (if any) orders for sanctions and costs ought to be made. 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