The Alberta Securities Commission settled with Galaxy Mortgage Corp. concerning allegations that it improperly sold mortgages as securities.

The ASC reports that Wilfred Richard, president of Galaxy Mortgage has agreed to pay $20,000 to settle allegations of illegally selling mortgages as investment contracts. The penalty covers the costs of the investigation, too. The ASC says that Richard also has agreed to cease trading in securities for 10 years, and to refrain from acting as a director or officer of any public company for 10 years.

The commission reports that between 1999 and 2001, Richard raised approximately $1.3 million from 50 Alberta residents without being registered with the ASC to trade in securities. And, he did not qualify for an exemption from the requirements of the Securities Act. Back in February, the commission sanctioned a mutual fund salesman at Galaxy for his involvement with these sales