The Alberta Securities Commission (ASC) and the Alberta RCMP announced on March 4 that Neil Andrew McDonald (a.k.a. Neil Andrews) of Calgary has been convicted and sentenced to two years in jail and 18 months of probation for fraudulently raising money from investors and money laundering. He has also been ordered to pay restitution in the amount of $418,835.
The conviction follows an investigation by the Alberta Joint Serious Offences Team (JSOT). Prior to trial, McDonald pled guilty to seven charges under the Criminal Code of Canada including Fraud Over $5,000, Laundering Proceeds of Crime, Impersonation, and Breaching Recognizance Conditions.
His sentence was handed down by Judge K. Crowshoe at the Provincial Court of Alberta in Calgary on Feb. 28.
McDonald fraudulently raised money from investors between October 2012 and April 2015, while banned from doing so, said the regulator.
“He stole the identity of one individual and fraudulently obtained approximately $25,000 of credit between August 25, 2016 and March 24, 2017. He also fraudulently opened a bank account using the same stolen identity,” said the ASC in a statement. After being criminally charged on these matters and breaching the conditions of his release while awaiting trial, McDonald was remanded in custody in October 2018 until his conviction and sentencing.
In 2009, McDonald violated Alberta securities law by fraudulently raising $439,000 from investors. As a result, McDonald was banned from trading or advising in securities for a period of 15 years. He repaid $439,000 in restitution and agreed to pay the Commission settlement and investigation costs. In 2011, McDonald, in defiance of the 2009 ban, fraudulently raised $240,000 from investors. In October 2012, the ASC charged McDonald with offences under the Securities Act (Alberta). On August 15, 2014, after a Provincial Court trial, McDonald was permanently banned from trading in securities and ordered to pay restitution; on May 29, 2015, he was sentenced to two years in jail.