Following an investigation by the Joint Serious Offences Team (JSOT) in Alberta, Neil Andrew McDonald of Calgary has been arrested for alleged breaches of the Criminal Code, announced the Alberta Securities Commission (ASC) and the Alberta RCMP in a joint news release on Feb. 21.
McDonald has been criminally charged with seven counts of fraud over $5000, one count of fraud under $5000 and one count of money laundering. It is alleged that he fraudulently raised about $240 000 from seven different investors from October 2012 to July 2015.
In 2009, McDonald violated Alberta securities law by fraudulently raising $439,000 from investors and was banned from trading or advising in securities for a period of 15 years.
In 2011, in defiance of the ban, McDonald 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, he was permanently banned from trading in securities and ordered to pay restitution. On May 29, 2015, McDonald was sentenced to two years in jail.
The current Criminal Code charges are alleged to have taken place between October 2012 and July 2015 while McDonald was engaged in court proceedings on the previous charges and waiting to serve his jail term, explained the news release.
This is the first arrest resulting from JSOT investigations in Alberta. JSOT is an enforcement partnership between the ASC, the RCMP Federal Policing's Financial Integrity Program and Alberta Crown Prosecution Service. JSOT investigates and prosecutes quasi-criminal cases under the Securities Act and certain securities-related criminal offences under the Criminal Code. In particular, JSOT targets repeat offenders, serious frauds and breaches of ASC or court orders and bans.