The Alberta Securities Commission has found that Calgary venture capital specialist Nicholas David Reeves violated securities laws by illegally distributing securities, by making a misrepresentation to at least one Alberta investor and by perpetrating a fraud on investors.

An ASC panel found that “Reeves engaged in the most serious of securities regulatory misconduct – fraud. Reeves lied to investors, misappropriated their money intended to be invested as venture capital in start-up entities and converted that money to his own use.”

The ASC panel’s findings were based on, among other things, Reeves’ admissions that he converted to his own use the money he received from at least 10 investors.

Reeves also admitted to making a misrepresentation by promising at least one investor that they would receive returns of 100% to over 300% per year on their investment.

Reeves further admitted that his actions have caused direct losses to investors of not less than $500,000.

The ASC panel has set dates in January and February 2011 for ASC staff and Reeves to provide submissions on what, if any, orders the panel should make against Reeves.

IE