B.C. Securities Commission alleges Alberta man defrauded two investors
The Executive Director of the British Columbia Securities Commission has issued a notice of hearing alleging that an Alberta man and a numbered company that he controls defrauded two investors.
The notice alleges that Robert James Maddigan, an engineer residing in Alberta, committed fraud by failing to deliver shares or return the money of two investors who had purchased shares in a coal company from his numbered company.
Maddigan is the sole director and officer of 0902395 B.C. Ltd. The company was a consultant to a coal company for the acquisition of a coal mine in Mongolia. In return, the coal company agreed to issue some of its shares to 0902395.
BCSC staff contends that in 2011, 0902395 sold the shares before it had received them from the coal company. It entered into agreements with 34 investors, under which the investors provided total proceeds of $880,000 to 0902395.
In 2012, 0902395 received nine million shares from the coal company and, in 2013, transferred the shares to some of the investors. However, staff alleges that certain investors, including a business associate and a friend of Maddigan, received more shares than they had paid for, while others received none.
Two investors Maddigan did not know – who paid $30,000 and US$12,500 for a total of 425,000 shares – received nothing. Maddigan, through his lawyer, told BCSC staff that he would repay these two investors in cash. He has not done so.
These allegations have not been proven. Counsel for the Executive Director will apply to set dates for a hearing into the allegations before a panel of commissioners on February 3, 2015 at 9:00am.
Source: B.C. Securities – B.C. Securities Commission alleges Alberta man defrauded two investors
