Businessman sanctioned for misleading investors

By Staff | May 29, 2013 | Last updated on May 29, 2013
1 min read

The Alberta Securities Commission (ASC) has sanctioned a Calgary-based businessman for committing fraud against investors relating to the sale of securities of the Focused Life Group of Companies.

The panel has sanctioned Victor George DeLaet, along with Stanley Kenneth Gitzel, for making or permitting misleading statements to investors relating to these securities.

The ASC panel ordered that:

  • DeLaet be permanently banned from trading in or purchasing any securities or exchange contracts, the use of all Alberta securities laws exemptions, and acting as a director or officer of any issuer;
  • DeLaet pay an administrative penalty of $1.5 million, and investigation and hearing costs of $40,000;
  • Gitzel be banned from trading in or purchasing any securities or exchange contracts for five years, and the use of all Alberta securities laws exemptions and acting as a director or officer of any issuer for 10 years (with limited exceptions); and
  • Gitzel pay an administrative penalty of $75,000, and investigation and hearing costs of $5,000.

The ASC panel also ruled that for his key role in the misconduct and his failure to acknowledge the seriousness of his actions, DeLaet “presents a clear, current and continuing threat to investors and the capital market. And that unless tightly and permanently constrained, he would remain a danger.”

The ASC panel found of the $47 million raised by the Focused Life Group of Companies, $35 million was raised via four documents that contained misleading or untrue statements.

Read the decision document.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.