The Alberta Securities Commission (ASC) on Monday accused a Calgary man of defrauding investors looking to buy shares in Facebook Inc.’s initial public offering.
In a notice of hearing, the ASC alleges Nelson Peter Bradbury illegally raised more than $1.5 million for investment contracts without proper registration and without a prospectus or exemption.
The ASC further alleges that Bradbury made misleading or untrue statements to investors that included how he intended to use investors’ money, how he was to be paid, and misrepresentations that he was acquiring pre-IPO shares in Facebook on behalf of investors.
He is also alleged to have perpetrated a fraud on investors by converting investment funds to his personal use, using investment funds to pay returns to other investors, and by falsifying statements of account to investors.
In addition, Bradbury is facing allegations that he made misleading or untrue statements to the ASC.
None of the allegations has been proven.
A hearing is to take place next February in Calgary.