A group of over 300 investors has filed a class action lawsuit against a Lethbridge businessman, seeking to recover over $500-million.
Blair Yorke-Slader represents the group. He says a large amount of money was raised from investors for a number of projects, and the allegation is that some of that money has gone missing.
The statement of claim filed in Court of Queen’s Bench alleges primary defendant, Ron Aitkens, along with 8 others named, conspired and acted to mislead the investors, and to defraud them of funds by means of an investment scheme.
The money was to be used as capital for a variety of real estate development projects, but the investors believe now, that the projects were never viable.
“It would be premature to say that it was designed to fail,” said Yorke-Slader. “The reality is that it’s failed in large measure.”
Council for defendant, Ron Aitkens was not able to appear on camera, but released this statement to Global News:
“..the allegation of a $500 million dollar loss to investors is a preposterous distortion of facts and (we) believe such a gross number to be a public relations stunt.”
Harvest Group of Companies statement
Aitkens and Harvest Group point to the recession for the stalled developments in real estate projects saying the projects will continue when the demand for these types of projects returns.
The statement goes on to read:
“All the company projects were bona fide real estate projects with real value and any suggestion to the contrary will be easily proven false in a court of law.”
The suit is also seeking to freeze the defendant’s assets, as well as appoint a supervisor to oversee the sale of real estate owned by harvest group, making sure the proceeds go to the plaintiffs.
The suit must be certified by a judge before it can proceed.
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