An Edmonton man is facing fraud allegations for collecting more than $2.5 million in investment money for a Pine Lake RV park that was never developed.
In an Alberta Securities Commission notice of hearing, the allegations laid out against Saileshwar Rao Narayan, known as Sal Naryan, include breach of undertaking and illegal distribution, dealing without representation, prohibited presentations and fraud.
According to the notice, between April 12, 2012, and May 23, 2012, the Prosperity Development Group raised more than $2.5 million from Alberta investors.
An offering memorandum dated March 26, 2012, stated that the group was a development startup raising funds to purchase property overlooking Pine Lake. That property was to be converted into an RV park.
In total, the Alberta Securities Commission said Narayan raised $3.4 million under the auspices of developing an RV park.
It is alleged the development company used investors’ money to purchase a 28.64-acre (11.59-hectare) piece of land on the southern shore of Pine Lake.
However, no application for development or rezoning of the property was ever made.
None of these allegations have been proven in court.
A hearing is scheduled for July 8 in Calgary.