Two Calgary men, accused in nearly $52-million Ponzi scheme

Two men and their Calgary-based companies have been accused of perpetrating a Ponzi scheme that tricked investors out of nearly $52 million, the Alberta Securities Commission said Monday.

CALGARY — Two men and their Calgary-based companies have been accused of perpetrating a Ponzi scheme that tricked investors out of nearly $52 million, the Alberta Securities Commission said Monday.

The ASC alleges Dale Joseph Edgar St. Jean and Gregory Dennis Tindall broke the law by misleading investors in an offering memorandum, in contracts and in promotional literature.

It said between March 2005 and November 2009, St. Jean’s and Tindall’s companies — TransCap and Strata-Trade — raised $51.6 million by promising low-risk investments with returns of 18 to 22 per cent.

“That’s one of our top red flags for investing that could signal trouble — promises of high returns and little or no risk,” ASC spokesman Mark Dickey said.

In Alberta, at least 133 investors were victims of the alleged scheme. About half of the proceeds came from Alberta investors, with the rest from offshore locales such as Australia, New Zealand and Vanuatu, Dickey said.

The alleged Ponzi scheme — a type of fraud in which money from new investors is used to pay ones that joined earlier — ultimately collapsed in November 2009.

The securities watchdog also says Tindall made false and misleading statements to ASC investigators.

The allegations haven’t been proven. A hearing date will be set on May 9.

Just Posted

Grassroots movement to clean up Red Deer is gaining momentum

Homeless people need more attention than shopping carts, says former councillor Cindy Jefferies

Improving life for people with Alzheimer’s and their families is a priority for Raitt

The federal Conservatives deputy leader is dealing with the disease in her own home

PHOTO: International Peace Day

Visitors broke bread, made crafts and trading cards at a gathering marking… Continue reading

Snowfall warning issued for Central Alberta

Environment Canada issued a snowfall warning for Central Alberta Friday afternoon. Warning… Continue reading

POLL: Most Red Deerians don’t want cell phones in the classroom

Sixty-six per cent of Advocate readers who responded to an on-line poll… Continue reading

Updated: Grey Cup in Red Deer to raise funds for military families

Money raised will go to the Military Family Resource Centre and be used locally

Saskatchewan RCMP charge man in abduction that sparked Amber Alert last Sunday

NORTH BATTLEFORD, Sask. — Saskatchewan RCMP have arrested a man following an… Continue reading

One dead following police-involved shooting in Burlington, Ont.

BURLINGTON, Ont. — Ontario’s police watchdog says a 32-year-old man was shot… Continue reading

Several injured as Tornado tears through Ottawa and Gatineau, Que.

OTTAWA — A tornado ripped through the Ottawa area Friday afternoon, damaging… Continue reading

B.C. wildfires burned large areas affected by mountain pine beetles: Experts

VANCOUVER — Clearing or burning beetle ravaged forests may be costly but… Continue reading

Dustin Byfuglien scores in overtime, Jets beat Flames 4-3 in pre-season

WINNIPEG — Bryan Little tied the game late in the third and… Continue reading

Mistrial denied in Calgary murder trial over jury’s visit to hotel Denny’s

CALGARY — A Calgary judge has denied a request for a mistrial… Continue reading

Former Canadian astronaut says space shuttle is a vehicle of hope

OTTAWA — Sending messages of hope from space is a big part… Continue reading

Canada requests trade panel on uncoated groundwood paper ruling by U.S.

OTTAWA — Canada has requested a NAFTA trade panel review a U.S.… Continue reading

Most Read