A Provincial Court of Alberta judge has sentenced former Calgary mutual fund salesperson Jason Yiu-Kwan Chan to three years in a federal penitentiary after finding him guilty on 30 counts of breaching Alberta securities laws, including fraud, making false statements to investors and trading in securities without registration or a prospectus. Provincial Court Judge Fradsham also ordered Chan be permanently banned from trading in securities, acting as an officer or director of any issuer and using Alberta securities laws exemptions. Judge Fradsham further ordered Chan to pay restitution of $62,167.05 to investors. Chan, who had no prior record, had previously pleaded guilty to the offences under Alberta securities laws.
In passing sentence, Judge Fradsham stated: “Mr. Chan’s egregious conduct was not in pocketing the investment funds, it was in deliberately overriding the instructions of the vulnerable investors for the sole purpose of investing money as he saw fit, regardless of the instructions of the investors, and with indifference as to their ability to withstand high risk investments.”
In August 2011, the ASC charged Chan in the Provincial Court of Alberta for illegally selling Comdev Financial and Terra Nova Capital securities (trade names registered to Chan) to several Alberta investors and making misrepresentations to those investors. ASC staff also charged that Chan engaged in conduct related to the Comdev Financial and Terra Nova Capital securities that perpetrated a fraud on the investors.
A copy of this decision can be obtained from the Provincial Court of Alberta.
The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect 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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