Securities regulators in Alberta are accusing a Calgary property developer of raising $1.3 million through an alleged illegal distribution.
The Alberta Securities Commission (ASC) published allegations Wednesday, charging Sundre Development Ltd., Aspen Springs Capital Group Inc., and William Joseph Sander, with engaging in an illegal distribution of securities and making misrepresentations to investors. The allegations have not been proven.
In its notice of hearing, ASC staff allege that Sundre Development raised approximately $1.3 million selling securities to at least 32 investors in 2010 without filing a prospectus, and without an appropriate exemption for all of the sales. It charges that Aspen Springs was involved in promoting the sale of these securities, and that Sander authorized, directed and participated in the alleged illegal activity. Additionally, the regulator says that they made misrepresentations regarding the project to be developed.
It also alleges that Sundre Development filed false documents with the ASC, claiming that certain distributions were to accredited investors, but the ASC says the investors it contacted didn’t qualify under that exemption.
ASC staff are seeking various sanctions, including monetary penalties; and, registration, trading, and officer and director bans.