CALGARY, Jan. 14, 2016 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Randy Zenovi Calmusky for perpetrating a fraud on investors.
Calmusky admitted that in 2008, a numbered company of which he was the controlling mind entered into an agreement to make a loan to Lifestyle Holmes Inc. Between 2008 and 2009, the numbered company sold portions of that loan to a number of investors, who were to be repaid at the same time as the loan. A total of $1,750,000 was advanced to Lifestyle under the loan (roughly $1.1 million from investor funds) and the loan was repaid to the numbered company in the spring of 2012. Calmusky admitted that instead of promptly repaying investors as required, he caused the majority of the money to be transferred to his personal line of credit and to his relatives without disclosing these transfers to investors.
In handing down its decision, an ASC panel noted that "…it is clear that Calmusky intended to benefit, directly or indirectly through his [numbered company], when he wrongfully diverted money that should have gone to the Investors. It is also apparent that he did so benefit: he had the use of that diverted money, and applied it in ways not contemplated by or disclosed to the Investors." The ASC panel also noted that Calmusky had consented to a court order requiring him to pay a sum approaching $1 million to the numbered company's receiver.
In its decision, the ASC panel ordered that Calmusky:
- pay an administrative penalty of $100,000 and investigation costs of $15,000;
- permanently cease trading in or purchasing securities or derivatives, and is permanently banned from using all exemptions contained in Alberta securities laws;
- is permanently prohibited from engaging in investor relations activities, advising in securities or derivatives, becoming or acting as a registrant, investment fund manager or promoter, or acting in a management or consultative capacity in connection with activities in the securities market; and
- is permanently prohibited from becoming or acting as a director or officer (or both) of any issuer, registrant or investment fund manager.
A copy of the sanction decision can be found on the ASC website at www.albertasecurities.com.
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: Mark Dickey, Senior Communications Advisor, 403.297.4481; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488
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