Real estate developers to settle ASC charges

Two Calgarians who operated companies focused on buying undeveloped lands on the edges of urban centres in southern Alberta have each agreed to pay $ 50,000 plus $ 5,000 in costs to settle Alberta Securities Act violations.

Mariano Giuseppe Serpico and Kevin Gary Allan, directors with La Terra Ventures Inc., La Terra Mortgage Inc., Discovery Plains Park Ltd., and Eagle Ridge Park Ltd., admitted the corporations were selling securities related to land acquisition and development projects without filing a prospectus, according to a news release from the Alberta Securities Commission.

La Terra Ventures admitted to trading in securities without being registered, and La Terra Ventures and La Terra Mortgage admitted to acting as a dealer without being registered in accordance with Alberta securities laws. Serpico and Allan admitted to having authorized, directed or acquiesced to violations of Alberta securities laws by the La Terra corporations.

According to an agreed statement of facts, La Terra signed deals with property owners to buy their land conditional on fundraising. It raised $ 28.4 million between 2008 and 2012 by selling undivided interests or UDIs in the land.

The projects include Discovery Plains in Olds, Eagle Ridge near Okotoks, Heritage Heights in Strathmore, Iron Landing near Crossfield, The Meadows near Claresholm and Creekside near Brooks.

The ASC said Serpico and Allan were co- operative and, while accepting responsibility for the contraventions, believed that their actions were in accordance with Alberta securities laws.

Two other men, La Terra directors John Carlos Labun and Ryan Scott Allan, are to appear in September to set a hearing date on charges they authorized, directed or acquiesced to violations of Alberta securities laws by the La Terra corporations.