Earlier this week Douglas Wayne Schneider was sentenced to one-year in prison after pleading guilty in Alberta Provincial Court to illegal distribution of securities, trading securities without registration and making misleading or untrue statements to investors for his role in The Investment Exchange (TIE) Mortgage Corp.
Schneider fled to California shortly after the collapse of the scheme only to be caught by U.S. Marshalls in February 2014 and extradited back to Alberta in June 2014. Spending the past year in jail, Schneider only has 60 days left to service of his sentence. Once out, Schneider is permanently banned from working in the securities industry in any type of management capacity.
Schneider’s partner in crime, Kenneth Charles Fowler, is still at large with an arrest warrant outstanding for his arrest.
Although the regulator put a stop to the fraud in 2012, the receiver found there is very little to show for the $27 million supposedly invested in short-term mortgage loans. Any funds the ASC were able to recover came from the sale of Fowler’s house along with the seizure of a Porche 911 and some expensive scotch.
The receiver, Grant Thornton, reported to the court in 2013 that there never were any legitimate mortgage investments and that funds were routinely diverted from the TIE accounts for purposes other than mortgage investments.
No restitution order was made by the judge in the case.