CALGARY, AB, July 25, 2024 /CNW/ - The Alberta Securities Commission (ASC) has issued written reasons for the Interim Order issued June 10, 2024, against GIC Capital Corp., Maljaars Financial Inc., Jeff Barrie Wilkie, and Robert Jacob Maljaars (collectively, the Respondents). 

Staff continue to investigate whether the Respondents contravened Alberta securities laws, including misrepresentations and fraud, contrary to sections 92(4.1) and 93(1)(b) of the Act.

An ASC panel received evidence that, since 2020, the Respondents raised more than $11 million from approximately 43 investors. Investors were told that their funds would be held in a segregated trust account in New Zealand, when in fact the capital was never put into trust or into a segregated account, but was instead used for unauthorized purposes. The Respondents said they were unable to repay investors as agreed because the head of the profit-earning venture had died, effectively freezing investor funds in probate. 

An ASC panel concluded that the nature and quality of the evidence warranted the issuance of a temporary order because the length of time required to conduct a hearing and render a decision could be prejudicial to the public interest.

The Interim Order requires that, for a period of 12 months from the date of the order, the Respondents are prohibited from using any exemption contained in Alberta securities laws and must cease trading in securities issued by GIC Capital Corp. and Maljaars Financial Inc.

A copy of the decision can be found on the ASC website at asc.ca.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission