A Calgary man has pled guilty to three counts of fraud for his involvement in a $27-million mortgage-fraud case, in breach of Alberta securities laws, according to an announcement from the Alberta Securities Commission (ASC) on Friday.
Kenneth Charles Fowler appeared in the Provincial Court of Alberta to plead guilty to his part in running a scheme that involved the sale of securities, the illegal distribution of securities and unregistered trading — all under the umbrella of The Investment Exchange Mortgage Corp. (TIE Mortgage).
The charges against Fowler and his co-accused, Douglas Schneider, were first levelled on Jan. 24, 2014. Fowler was later apprehended in Mexico in January 2016, and then extradited to Canada, where he faced charges brought by the ASC for his then-alleged connection to the illegal distribution of securities in TIE Mortgage.
In August 2016, Fowler was granted bail, with conditions that prohibited him from travelling, trading in any securities or derivatives unless through a registered dealer, engaging in any activities tied to investor relations and acting as a director of any issuer.
In Schneider's case, he was arrested in California in 2014 and returned to Canada. Schneider, who pled guilty in July 2015 for his role in the operation, was sentenced to a year in jail after admitting that a prospectus had never been filed for TIE Mortgage and that he was not a registrant with the ASC.
Fowler's sentencing is set for June 2.
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