Calgary land developer William Joseph Sander who operated in the Sundre area has agreed to pay the Alberta Securities Commission (ASC) $40,000 as part of a settlement on allegations he cheated dozens of investors across the province.
Sander also agreed to an eight-year prohibition on trading and purchasing securities in the province.
The Nov. 18 settlement agreement between Sander, president and sole director of Sundre Development Ltd (SDL) and Aspen Springs Capital Group Inc., was made with Sander admitting to an illegal distribution and making false misrepresentations.
The agreement also stated SDL admitted to filing misleading documents with the ASC.
Sander also agreed to pay the ASC $11,000 in legal costs and must resign all positions as a director or officer and to refrain from becoming or acting as a director or officer for a period of eight years.
Prior to this month's settlement agreement an Interim Cease Trade Order against the respondents was issued on July 21, 2010 after the commission received evidence from ASC staff suggesting the accused parties had made prohibited representations and had engaged in illegal trading and distribution of Sundre Development securities. That order was extended last January following the ASC's receipt of further evidence of alleged breaches of Alberta securities laws by Sander and the two companies.
During the ASC's probe it was determined Sander and the companies had proposed the building of a four-season recreational development called Aspen Springs Lake Resort on Mountain View County lands, along Bearberry Creek west of Highway 22.
Prior to this project Sander had no experience in land development and no formal training in securities law, said the ASC.
The commission said SDL raised about $1.3 million between Jan. 18, 2010 and June 18, 2010 by selling non-voting Class F shares to at least 32 Alberta investors who also purchased from the company the right to buy future lots of lands at a pre-sale or discounted price.
The agreement also said no preliminary prospectus or prospectus with respect to Class F shares was filed or received by the ASC.
“Both personally and as the directing mind, director and officer of SDL and Aspen Springs, Sander is responsible for the illegal distributions of the Class F shares,” said the agreement.
The ASC also concluded that between June, 2009 and September, 2010 the respondents made several misleading filings. The agreement also stated the respondents made several misrepresentations, including passing on applications for redesignation and subdivision of lands in the county when none were made, and stating that more than 400 lots were to be developed when the county had development restrictions limiting the maximum density on a quarter section of land to 80 lots.
The ASC said in the final settlement agreement that Sander and the businesses had violated three sections of the provincial Securities Act.
