ASC finds that Logan Keith Shaw and 1681502 Alberta Ltd. perpetrated a fraud on investors

CALGARY, AB, Nov. 14, 2022 /CNW/ - The Alberta Securities Commission (ASC) has found that Logan Keith Shaw and 1681502 Alberta Ltd. (1681502) contravened s. 93(b) of the Securities Act (Alberta) by engaging in a course of conduct that they knew perpetrated a fraud on investors.

From September 26 to October 16, 2012, 1681502, a company controlled by Shaw, raised $940,000 from six investors, who were told that their investment funds would be used for a business in Mexico. Instead, Shaw used approximately $807,780 to purchase a house in Vernon, British Columbia.

An ASC panel determined that the Respondents engaged in prohibited acts by misrepresenting the use of investors' funds and misappropriating most of those funds for Shaw's personal use, and that these acts resulted in actual loss to investors. In its reasons, the panel stated: "We have no doubt that Shaw's conduct was deliberate and calculated to cause pecuniary loss to the investors – that is, pecuniary loss was not merely a foreseeable risk, but an intended outcome."

The proceeding will now move into a second phase to determine what, if any, orders for sanction or cost-recovery ought to be made against Shaw. The timing of the next steps will be set after hearing from the parties.

A copy of the decision is available on the ASC website at asc.ca.  

The ASC gratefully acknowledges the assistance of the British Columbia Securities Commission in this matter.

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