The Alberta Securities Commission (ASC) has found that Calgary-based Delta 3 Capital Corporation Inc. and its directors Darrell W. Dunn, Michael Gottselig and Lucas “Luke” Brzeski illegally traded and distributed securities.

An ASC panel found that Delta 3, Dunn, Gottselig and Brzeski made misrepresentations to Alberta investors and that “the making of materially untrue and misleading statements to entice investment by Alberta investors is obviously at variance with fairness to investors and capital market integrity.”

Delta 3, Dunn, Gottselig and Brzeski raised US$1 million through a program that promised fixed returns from trading in United States government treasury bills.

The ASC panel noted that “the program in substance was an amateurish venture by the respondents, with the individual Respondents being perhaps somewhat credulous about its profitability.”

The ASC panel has set dates regarding submissions by all parties on possible sanctions in this proceeding. Once all parties have made their submissions, the ASC panel will decide what, if any, sanctions ought to be ordered.

IE