News Release
ASC reciprocates criminal fraud conviction against Timothy Ray Carruthers
Nov 19, 2020
CALGARY – The Alberta Securities Commission (ASC) issued an order permanently prohibiting Timothy Ray Carruthers from participating in Alberta's capital market after he was convicted on 22 counts of fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code of Canada. Carruthers was sentenced on March 13, 2019 to six years’ imprisonment by the Court of Queen's Bench of Alberta after he pled guilty on all counts.
From January 23, 2009 to June 30, 2017, Carruthers induced 22 investors to participate in his fraudulent Ponzi scheme involving purported bridge financing for real estate transactions in Alberta. This week an ASC panel found that his convictions arose from a course of conduct related to securities and that it was in the public interest to issue orders against him under the Securities Act (Alberta). The panel observed that fraud involving a Ponzi scheme is especially serious and noted that the amount of Carruthers' fraud exceeded $5 million and most of the money raised was misappropriated for personal use.
The ASC panel ordered that Carruthers:
- must permanently cease trading in securities or derivatives, and that all exemptions contained in Alberta securities laws do not apply to him;
- must immediately resign all positions he holds, and is permanently prohibited from becoming or acting as a director or officer of any issuer, registrant, investment fund manager, recognized exchange, recognized self-regulatory organization, recognized clearing agency, recognized trade repository, designated rating organization or designated benchmark administrator; and
- is permanently prohibited from engaging in investor relations activities, advising in securities or derivatives, becoming or acting as a registrant, investment fund manager or promoter, and acting in a management or consultative capacity in connection with activities in the securities market.
A copy of the decision is available on the ASC website at albertasecurities.com.
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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For further information please contact:
For Media Inquiries:
For Investor Inquiries:
Theresa Schroder
Senior Advisor, Communications
media@asc.ca
ASC Public Inquiries
Toll Free: 1-877-355-4488
inquiries@asc.ca