A panel of the New Brunswick Securities Commission (NBSC) has imposed sanctions on a Fredericton woman and her company, Shaker Management Group Inc. for violating securities laws.
Trudy Hendry participated in a real estate investment plan that led to significant financial losses for her and others who became involved, the NBSC says.
In the settlement agreement, Hendry acknowledged that, even though she was misled, her actions violated securities laws, causing damage to others.
The agreement bans Hendry from selling or promoting investments. It also states that all securities exemptions do not apply, and that she cannot become a director or officer of any issuer for a period of five years. Shaker Management Group Inc. is also banned from selling investments, and all securities exemptions do not apply permanently.
“This is a good example of why New Brunswickers need to research, seek a second opinion or professional advice and do a background check before getting involved in any investment opportunity,” said Rick Hancox, Executive Director of the NBSC.
“Taking time to understand what the investment is and how it will make money as well as having realistic expectations about the opportunity will help to protect you and your money,” said Hancox.
Hendry states that she was misled by two other parties — Steven Vincent Weeres (initially known to Hendry as Steve Webb) and Rebekah Donszelmann (initially known to Hendry as Becky Junior), both currently of Millet, Alta. Hendry formed a business relationship with Weeres and Donszelmann that resulted in the creation of Shaker Management Group Inc.
Weeres and Donszelmann are scheduled to appear before a panel of the NBSC on March 9, with respect to further alleged violations to securities laws. Criminal charges including fraud are pending against Weeres and Donszelmann in Alberta.
The relationship between Hendry and Weeres and Donszelmann was formed to promote training sessions that would help persons identify potential franchise opportunities. Soon thereafter, it evolved into a plan to buy a hotel property for investment purposes.
Weeres and Donszelmann were allegedly involved in recruiting potential investors in the hotel investment plan. Hendry has acknowledged her involvement in the promotion of the plan to potential investors. Weeres and Donszelmann allegedly approached Hendry’s friends and acquaintances to the proposed purchase of a hotel as an investment property.
The friends who were solicited did not invest, but they did provide interest-free loans totalling $120,000 to Shaker Management Group Inc. One person from Nova Scotia invested $22,600. In addition, Hendry remortgaged her home and invested $70,000 in the plan.
Weeres and Donszelmann are also alleged to have gained control of Shaker Management Group Inc., its bank account and Hendry’s personal credit cards from which they allegedly paid all of their personal living expenses.
The plan fell apart in late 2009 when Hendry discovered the true identities of Weeres and Donszelmann. The hotel purchase was never completed, and Shaker Management Group Inc. is currently insolvent.
IE
NBSC bans Fredericton businesswoman, Shaker Management
Real estate investment plan that led to significant financial losses
- By: IE Staff
- January 13, 2011 December 14, 2017
- 10:52