CALGARY – May 26, 2017 – Kenneth Charles Fowler has been sentenced to three years imprisonment less credit for time served after pleading guilty to fraud, trading in securities without registration and illegal distribution of securities in relation to the sale of securities of The Investment Exchange Mortgage Corporation (TIE Mortgage).
Alberta Provincial Court Judge Michael Dinkel also ordered that Fowler be permanently:
- banned from acting in any capacity that would require registration;
- denied from relying on any or all exemptions in Alberta securities laws, except for one account through a registrant who has first been given a copy of this Order;
- prohibited from engaging in investor relations activities; and
- prohibited from becoming or acting as a director or officer of any issuer.
Fowler must also resign all positions he currently holds as a director or officer of any issuer.
Fowler admitted that during the material time he was not registered with the Alberta Securities Commission (ASC) as a salesperson authorized to trade in securities, and that at no time was a prospectus filed with the ASC for the distribution of any securities of TIE Mortgage. Fowler admitted to using money raised from investors to support his personal lifestyle, day trading, and to make payments to other investors as dividends and redemptions.
On March 16, 2017, Fowler entered guilty pleas in the Provincial Court of Alberta to three counts of breaching Alberta securities laws. Fowler pled guilty to one count each of fraud in relation to the sale of securities of TIE Mortgage, unregistered trading in TIE Mortgage securities and engaging in an illegal distribution of those securities.
On January 24, 2014, the ASC charged Fowler (and co-accused Douglas Schneider) in the Provincial Court of Alberta for breaching Alberta securities laws in relation to the sale of TIE Mortgage securities. At that time, arrest warrants were also issued for both men.
Schneider was arrested and detained in the United States on February 28, 2014 and extradited to Canada in June 2014. He plead guilty in July 2015 to making misleading statements, trading in securities without registration, and trading in distributions of securities without a prospectus. He was sentenced to one year in jail with credit given for time served for his role in TIE Mortgage.
Based on information provided by the ASC, Fowler was arrested in Mexico and returned to Canada to face these charges in January 2016.
The ASC gratefully acknowledges the assistance of the Medicine Hat Police Service in this investigation.
A copy of the court transcript can be obtained through the Provincial Court of Alberta.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.
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