alberta securities commission

Recidivist Neil Andrew McDonald sentenced to two years imprisonment for fraud and money laundering

CALGARY – March 4, 2019 – The Alberta Securities Commission (ASC) and the Alberta RCMP announced today that Neil Andrew McDonald (a.k.a. Neil Andrews) of Calgary was convicted and sentenced to two years in jail and 18 months of probation in addition to being ordered to pay restitution in the amount of $418,835. The sentence was handed down by Judge K. Crowshoe at the Provincial Court of Alberta in Calgary on February 28, 2019.

Judge K. Crowshoe
Judge K. Crowshoe

Following an investigation by the Alberta Joint Serious Offences Team (JSOT) and prior to a trial, Mr. McDonald pled guilty to seven charges under the Criminal Code of Canada including Fraud Over $5,000, Laundering Proceeds of Crime, Impersonation, and Breaching Recognizance Conditions. McDonald fraudulently raised money from investors between October 2012 and April 2015, while banned from doing so. He stole the identity of one individual and fraudulently obtained approximately $25,000 of credit between August 25, 2016 and March 24, 2017. He also fraudulently opened a bank account using the same stolen identity. After being criminally charged on these matters and breaching the conditions of his release while awaiting trial, McDonald was remanded in custody in October 2018 until his conviction and sentencing.

In 2009, McDonald violated Alberta securities law by fraudulently raising $439,000 from investors. As a result, McDonald was banned from trading or advising in securities for a period of 15 years. He repaid $439,000 in restitution and agreed to pay the Commission settlement and investigation costs. In 2011, McDonald, in defiance of the 2009 ban, fraudulently raised $240,000 from investors. In October 2012, the ASC charged McDonald with offences under the Securities Act (Alberta). On August 15, 2014, after a Provincial Court trial, McDonald was permanently banned from trading in securities and ordered to pay restitution; on May 29, 2015, he was sentenced to two years in jail.

This is the first conviction resulting from JSOT investigations in Alberta. JSOT gratefully acknowledges the assistance of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in this matter.

JSOT is an enforcement partnership between the ASC, the RCMP Federal Policing’s Financial Integrity Program and Alberta Crown Prosecution Service. JSOT investigates and prosecutes quasi-criminal cases under the Securities Act and certain securities-related criminal offences under the Criminal Code. In particular, JSOT targets repeat offenders, serious frauds and breaches of ASC or court orders and bans. The primary objective is to protect investors and further enhance confidence in the Alberta capital market through collaborative investigations and prosecutions of serious violations of the law using the provisions of the Securities Act (Alberta) or the Criminal Code.

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.

The RCMP Federal Policing’s Financial Integrity Program contributes to the security of the Canadian economy and seeks to protect Canadians and their governments from financial crimes perpetrated by organized crime and others. The Financial Integrity Program is delivered in partnership with international and domestic government agencies, domestic stakeholders and the community at large.