CALGARY, March 26, 2012 /PRNewswire/ - The Alberta Securities Commission (ASC) has issued a Notice of Hearing alleging that Dale Joseph Edgar St. Jean, Gregory Dennis Tindall and their Calgary-based companies, TransCap Corporation and Strata-Trade Corporation, perpetrated a fraud on Alberta investors by conducting a $50 million Ponzi scheme.
ASC staff allege the named parties breached Alberta securities laws by making false and misleading statements to investors in an offering memorandum, in contracts and in promotional literature. ASC staff also allege St. Jean, Tindall and Strata-Trade falsely certified that an offering memorandum did not contain a misrepresentation and failed to file an offering memorandum and any reports of exempt distribution as required. ASC staff further allege that Tindall made false and misleading statements to ASC investigators.
According to the Notice of Hearing, between March 2005 and November 2009, TransCap and Strata-Trade raised $51.6 million with the promise of low risk and high returns of 18% to 22%. ASC staff allege that instead of investing the investor funds as stated in the Offering Memorandum and contractual documents, St. Jean and Tindall used the investors' money to orchestrate a Ponzi scheme that ultimately collapsed in November 2009.
An appearance to set a date for a hearing will be held at 2 p.m. on May 9, 2012 in the ASC Hearing Room, 5th floor, 250 - 5th Street SW, Calgary, Alberta.
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