On June 16, the Alberta Securities Commission issued orders pursuant to the reciprocal enforcement section of the Alberta Securities Act against Michael Ernst Ruge and Chivas Hedge Fund Ltd.

In a settlement agreement with the British Columbia Securities Commission in 2005, Ruge and Chivas admitted to making misrepresentations and engaging in a $1.5 million illegal distribution of units of Chivas Growth Fund Limited Partnership to investors in B.C., Alberta, and Ontario. In addition, Ruge acknowledged that he committed a fraud by failing to use the funds as he had described to the investors.

As a result of those facts, and the sanctions ordered by the BCSC, the ASC concluded that it was in the public interest in Alberta to order that Ruge and Chivas ceased trading in and purchasing securities until May 5, 2030.