The Alberta Securities Commission announced Friday that it will schedule a hearing into allegations that Calgary-based Strategic Metals Corp., illegally raised more than $36.4 million from Alberta investors.

ASC staff alleges that under the direction of Edna Forrest, Carol Weeks, and Bradley Regier, the firm engaged in illegal trades and distributions of preferred shares of Strategic and made false or misleading statements to investors in offering documents filed with the commission.

In its notice released Friday, ASC staff alleges that Strategic Metals illegally raised over $36.4 million from approximately 285 Alberta investors, and without any security moved at least $26.5 million out of the country in purported anticipation of obtaining agreements for mining interests and concessions in South America and Southeast Asia.

Forrest, Weeks, and Regier are alleged to have made misrepresentations in offering memoranda used to solicit the investments, and to have made false statements to ASC investigators while under oath.

Strategic Metals has given an undertaking to the ASC not to trade in securities and its bank account has been frozen by order of the ASC’s executive director.

Also named in the notice was Capital Alternatives Inc., the selling agent for Strategic, and Milowe Brost. ASC staff alleges that Capital Alternatives and its founder, Brost, made misrepresentations in respect of the preferred shares to investors in promotional materials and on its Web site.

The ASC’s investigation continues and the matter is being referred to the RCMP.