Calgary resident Nelson Peter Bradbury has been sanctioned by the Alberta Securities Commission, which found him guilty of multiple breaches of Alberta securities law.
According to a statement from the regulator, Bradbury sold investment agreements to at least 16 investors and thus raised more than $1.5 million from around January 2010 to March 2013. He used approximately half of the funds to trade in his brokerage accounts, incurring significant losses. At least $370,000 of investors’ money was also diverted for personal use.
Bradbury’s investment dealings were, in fact, illegal; at the time he started peddling them, he had just admitted to illegally raising money from investors in a separate case, agreeing to market-access bans and costs imposed by the ASC. In addition, he issued no prospectus or offering memorandum, contravening laws against illegal distribution.
He deceived investors via a host of misrepresentations, including promises that the funds would be used solely for “investing in funds that traded in securities based on his investment model,” that “fees and expenses would be paid from his share of the profits or interest earned,” and that “investor money would be used to beneficially acquire pre-IPO shares in Facebook, Inc.”
He also misled investigating ASC staff by telling them he was providing unsolicited investment advice to certain relatives and close family friends when, at the time he was asked, he had already “solicited at least four investors… none of whom were family or close friends of Bradbury’s.”
An ASC panel ordered that Bradbury disgorge $370,000 for his non-compliance with Alberta securities laws; pay an administrative penalty of $150,000 and investigation and hearing costs of $13,000; and face an array of permanent market-access bans.
The panel was convinced that Bradbury “is, and will remain, a serious risk to the investing public unless removed from the capital market forever.”
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