The Alberta Securities Commission has ruled four former executives with Concrete Equities were guilty of misconduct when they persuaded hundreds of people to invest in the company.
An ASC panel found David Jones, David Humeniuk, Varun Vinny Aurora and Vincenzo De Palmas weren’t registered as dealers and were trading without issuing a required prospectus.
It also found with the exception of De Palma, the men lied to investors.
Concrete Equities promoted partnerships in commercial property during the boom.
The company raised nearly $120 million from more than 3,700 investors before going into receivership in 2009.
It’s unclear how much the investors may recover.
The hearing heard Concrete offered units in eight real estate-based limited partnerships.
They invested in Calgary strip malls and office buildings and in raw land in Mexico.
In July 2009, Concrete and seven of the partnerships were placed in receivership.
According to the receiver’s report, only five of some 40 Concrete projects have enough value for there to be a chance of some recovery for the investors
Sanctions against the four will be determined at a future hearing.
-with files from the Calgary Herald
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