The Alberta Securities Commission (ASC) issued a Notice of Hearing Aug. 4 alleging that Brian Arthur Kitts and Vesta Capcorp Inc. “engaged in a course of conduct which they knew, or ought to have known, perpetrated a fraud on investors.”

The notice alleges that Kitts was “the guiding mind of Vesta,” a Bragg Creek, Alberta-based company that raised approximately $5.3 million from 20 investors. “The money was supposed to be used to finance real estate developers or other companies or persons in the real estate industry. Instead, approximately $3.3 million was used to pay principal and returns owing to existing investors in a manner consistent with a ponzi scheme.”

Allegations have not been proven

The ASC says the other approximately $2 million was utilized by Kitts, mainly for his personal use. The allegations have not been proven.

An appearance to set a date for a hearing will be held on Sept. 13, 2017 in Calgary. A copy of the Notice of Hearing can be found on the ASC website.