The Alberta Securities Commission (ASC) alleges that Nelson Peter Bradbury of Calgary, who is not a registered advisor, lured investors into buying $1.5 million of fake funds and made misleading statements about using their money to purchase pre-IPO shares in Facebook.

The ASC claims that Bradbury sold investors units in a variety of funds bearing names such as the Nelson Investment Fund, the Nelson Investments Facebook Fund, and the NIF Facebook Fund. The ASC says that these were not registered investment funds at all, but rather "were nothing more than bookkeeping or tracking mechanisms".

The ASC claims that Bradbury was actually using some of the investors’ money to pay his personal expenses such as his grocery bills and his mortgage, to make transfers to his parents, as well as to pay fictional returns to other investors. The ASC says that Bradbury was not generating profits with his investment scheme, and that he never owned or acquired any Facebook shares during the time in question.

None of these allegations have been proven, and an appearance to set a date for a hearing is scheduled to take place in Calgary on February 9.

This is not the first time Bradbury has had to appear before an ASC panel. In 2001, while working for CIBC Wood Gundy, he was found to have acted contrary to the public interest when he raised approximately $322,000 from 29 people who did not qualify for prospectus exemptions.