Panel sanctions respondents for deceiving investors and operating a Ponzi scheme
CALGARY, Feb. 25, 2019 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Arnold Breitkreutz, Base Finance Ltd. (Base Finance) and Susan Elizabeth Way for perpetrating a fraud on investors. An ASC panel previously determined that the respondents, who raised approximately $137 million from hundreds of investors, perpetrated a fraud by deceiving investors and operating a Ponzi scheme.
The ASC panel ordered that:
- Breitkreutz must pay an administrative penalty of $1 million, a disgorgement order of $2,671,406 and investigation and hearing costs of $100,000;
- Way must pay an administrative penalty of $150,000, a disgorgement order of $362,049 and investigation and hearing costs of $50,000; and
- Breitkreutz, Base Finance and Way are subject to extensive market-access bans. Among an array of other bans outlined in the decision, Breitkreutz and Base Finance are permanently banned from trading in or purchasing securities and derivatives. Way is banned from trading in or purchasing securities and derivatives for 20 years or until the monetary orders against her are paid, whichever is later.
In its decision, a majority of the panel considered Breitkreutz's misconduct to be "among the most egregious known to the capital market." The majority of the panel also stated that the "amounts taken from investors by Breitkreutz and Way, the extended period of time over which they were taken, the number of investors affected by the Respondents' misconduct, and the Respondents' continued assertions that there was nothing wrong with their conduct apart from not being registered with the ASC put this case among the worst frauds perpetrated in 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: Curt Boechler, Senior Communications Advisor, 403-835-1263; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488