Lethbridge Land Development Firm Hit with Penalties
Tags: alberta securities commission, assurances, british columbia, commission proceedings, estate developments, guaranteed rate, misleading statements, offering memorandum, residential development, sales seminar, salespeople, securities regulator
A Lethbridge land development firm – Foundation Capital Corporation will pay a $100,000 penalty as part of a settlement with the province’s securities regulator.
Foundation Capital Corporation was asked to answer a claim as it made misleading statements in marketing a 923 acre residential development south of Calgary. Ronald Aitkens, its presidents, will also have to pay $30,000 to settle the allegations against him along with $15,000 towards the costs of the Alberta Securities Commission (ASC) proceedings.
Foundation Capital Corporation is a registered as Lethbridge company, an was cited earlier this year along with two related businesses. A 20 day hearing into those claims has been scheduled for next January.
The allegations of misleading statements about the Priddis project were withdrawn after the company’s officers reached an agreement with the ASC officials.
Foundation Capital and its parent company, Harvest Group have been part of more than 30 projects in Alberta, Ontario and British Columbia.
The investigation was launched by the ASC after the commission heard complaints about prospective investors being offered a guaranteed rate at a sales seminar, and assurances that were unsubstantiated assurances that the municipal council in the Priddis area was “very, very supportive” of the Spruce Ridge Project.
Before resuming its work on the Priddis project, his companies will file a new offering memorandum with the commission. Foundation Capital has voluntarily agreed a payment of $250,000 to the commission, allowing it to develop a market training module for salespeople involved in such real estate developments.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
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