CALGARY, June 11, 2014 /CNW/ - Neil Andrew McDonald pled guilty on June 9, 2014 to three counts of fraud in the Provincial Court of Alberta. He also pled guilty to making misrepresentations to investors and to breaching a Settlement Agreement with the Alberta Securities Commission (ASC). The ASC charged McDonald with these offences in Provincial Court in October 2012.
When making these pleas, McDonald admitted that he had taken funds from three investors on the basis he would use the money to purchase securities in real estate investments connected to Edgeworth Properties Inc. Instead, he put the investors' money into an account he controlled and used the funds for personal purposes. McDonald also admitted to making misrepresentations when he told investors that he was authorized to sell Edgeworth Properties securities and that such securities were protected by deposit insurance. Further, McDonald admitted that his purported sale of securities to the three investors violated undertakings he made to the ASC in September 2010 to refrain from acting as a registrant or investment adviser and to otherwise cease trading in securities.
Provincial Court Judge Van de Veen ordered a pre-sentence report and a "psychological/psychiatric" assessment of McDonald.
The sentencing hearing is scheduled for October 31, 2014.
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