Alberta man bought Vernon home with fraudulent cash; on the hook $500K | iNFOnews | Thompson-Okanagan's News Source
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Alberta man bought Vernon home with fraudulent cash; on the hook $500K

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An Alberta businessman who duped almost $1 million out of investors and then used the money to buy a home in Vernon is on the hook for half a million dollars.

According to a July 14 Alberta Securities Commission, decision Logan Keith Shaw's fraud began a decade ago when he raised $940,000 for a Mexican business venture but spent $807,000 of the cash on buying a house in Vernon for him and his partner.

"Shaw's serious misconduct showed that he should never again be in a position of raising money from investors," the Alberta Securities Commission said in the decision, adding he "clearly" had "no intention" of using the money for his business venture.

The decision says Shaw, who was living in Grand Prairie at the time, set up a numbered company and raised the money from six investors telling them it was for a business which would set up point-of-sale machines in Mexican taxis.

One investor took legal action and the court ordered the home to be sold. The investor recouped their $500,000 investment.

In the decision, Shaw argued because of this, the investor "did not experience real harm" and appeared to take little responsibility for his conduct, sometimes blaming the regulator for the situation.

The Alberta Securities Commission says Shaw filed a 960-page statement on the matter, although much of it was confusing.

"It was, therefore, difficult to discern precisely what his position was on the specific orders sought by (the regulator)," the decision reads.

READ MORE: BC financial advisor accused of fraud, took $330K from seniors

At one point Shaw seemed to accept a $300,000 penalty, at another point, he argued he shouldn't be fined or have any restrictions placed on him.

Shaw told the Securities Commission the negative effects of the regulator's actions on his "livelihood, time, money, property, and relationships" outweighed his misconduct and the money he took.

"Shaw said in his written submissions that his misconduct was not deliberate, and he attempted to justify (his) fraudulent use of investor funds," the Securities Commission said.

Unsurprisingly, the Securities Commission didn't see it that way, calling Shaw's misconduct "serious and deliberate."

READ MORE: Merritt bank fraudster sentenced to house arrest

"It does not require specialized education to know that behaviour is wrong," the decision says.

There is little information in the decision about Shaw, only that he is 43 years old and has several children. The decision says he no longer lives in Canada, but doesn't say what country he now lives in.

Ultimately, the Alberta Securities Commission barred him from trading in or purchasing securities for life and ordered him to pay $562,780, which includes a $150,000 fine, $129,000 in costs, and $283,780 obtained in the fraud.


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