CALGARY, March 23, 2017 /CNW/ - The Court of Queen's Bench of Alberta has issued an Order approving a distribution plan for the assets of Prospera Mortgage Investment Corporation (PMIC), Prosperity Development Group Ltd. (PDGL) and Prospera Management Corp. (PM). The Alberta Securities Commission (ASC) obtained an Order from the Court on October 4, 2016, appointing MNP LTD as the receiver over the assets frozen by the ASC during its investigation of the three companies and their principal, Saileshwar Rao Narayan.
In a decision released on August 11, 2016, the ASC found that Narayan had used the corporations to raise over $5.8 million from investors. Narayan and each of the corporations had admitted to perpetrating a fraud on investors. During the course of its investigation, the ASC issued freeze orders for four accounts belonging to the three corporations, resulting in the preservation of about $1.5 million of funds belonging to PDGL and $245,000 belonging to PMIC.
Pursuant to the distribution order, the vast majority of the funds will be distributed to investors who proved their claims to the receiver and will participate in a pro rata distribution of the net assets. The distribution order allows for the payment of reasonable professional fees incurred over the course of the receivership.
"The ASC is pleased that investors will receive nearly all of the assets frozen in the course of its investigation, and commends the receiver for carrying out its duties quickly, efficiently and in the public interest," said Cynthia Campbell, Director, Enforcement at the ASC.
A copy of the filed Order will be made available on the receiver's website: http://mnpdebt.ca/prosperity.
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 Advisor, Communications, 403.297.4008; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488