An Alberta man has been sentenced to a year in jail in connection with unregistered trading and an illegal distribution.
Douglas Schneider was ordered to spend a year in prison after he pled guilty to trading securities without registration, the illegal distribution of securities, and making misleading statements to investors, the Alberta Securities Commission (ASC) announced on Tuesday. He was also permanently banned from the markets.
Back in 2014, Schneider was arrested in California, and later extradited to Alberta to face charges brought by the ASC in connection with the alleged illegal distribution of securities in The Investment Mortgage Corp. (TIE Mortgage). Another man, Kenneth Fowler, was also charged in the scheme, but he has yet to be apprehended.
In Schneider’s case, with credit for the time he has already served in prison, he will be required to serve another 60 days, the ASC notes.
Schneider admitted to not being registered with the ASC, and that a prospectus was never filed for the distribution of any securities in TIE Mortgage, and that he made representations to investors regarding the use of their funds and legitimacy of the investments without confirming the accuracy of those statements, the ASC says.