JSOT makes first arrest in fight against financial crime
The Alberta Securities Commission (ASC) and the Alberta RCMP announced today that Neil Andrew McDonald of Calgary has been charged with alleged breaches of the Criminal Code following an investigation by the Joint Serious Offences Team (JSOT) in Alberta.
McDonald has been criminally charged with seven counts of fraud over $5,000 contrary to section 380(1)(a), one count of fraud under $5,000 contrary to section 380(1)(b) and one count of money laundering contrary to section 462.31(2). It is alleged that McDonald fraudulently raised approximately $240,000 from seven different investors from October 2012 to July 2015.
A bail hearing has been set for Wednesday,
February 22, 2017.
In 2009, McDonald violated Alberta securities law by fraudulently raising $439,000 from investors. As a result, McDonald was banned from trading or advising in securities for a period of 15 years. He repaid $439,000 in restitution and agreed to pay the Commission settlement and investigation costs.
In 2011, McDonald, in defiance of the previously mentioned ban, fraudulently raised $240,000 from investors. In October 2012, the ASC charged McDonald with offences under the Securities Act (Alberta). On August 15, 2014, after a Provincial Court trial, McDonald was permanently banned from trading in securities and ordered to pay restitution; on May 29, 2015, he was sentenced to two years in jail.
The current Criminal Code charges are alleged to have taken place between October 2012 and July 2015 while McDonald was engaged in court proceedings on the previous charges and waiting to serve his jail term.
A copy of the previous Settlement Agreement and Undertaking, as well as Orders relating to McDonald can be found on the ASC website at www.albertasecurities.com.
This is the first arrest resulting from JSOT investigations in Alberta.
JSOT is an enforcement partnership between the ASC, the RCMP Federal Policing Financial Integrity Program and Alberta Crown Prosecution Service. JSOT investigates and prosecutes quasi-criminal cases under the Securities Act and certain securities-related criminal offences under the Criminal Code. In particular, JSOT targets repeat offenders, serious frauds and breaches of ASC or court orders and bans. The primary objective is to protect investors and further enhance confidence in the Alberta capital market through collaborative investigations and prosecutions of serious violations of the law using the provisions of the Securities Act (Alberta) or the Criminal Code.
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.
The RCMP Federal Policing’s Financial Integrity Program contributes to the security of the Canadian economy and seeks to protect Canadians and their governments from financial crimes perpetrated by organized crime and others. The Financial Integrity Program is delivered in partnership with international and domestic government agencies, domestic stakeholders and the community at large.