A convicted fraudster has been permanently banned by the Alberta Securities Commission (ASC).
A hearing panel of the ASC ordered that Dane Michael Skinner is barred from Alberta’s capital markets after he was convicted of fraud — which the panel found involved securities — and money laundering.
Following a jury trial in May 2024, Skinner was convicted of one count of fraud over $5,000 and one count of money laundering in connection with a scheme that allegedly defrauded investors of almost $3 million, purportedly to finance the development of a product that promised to “revolutionize” fracking in the energy industry.
“Skinner misled investors by saying that the product had been successfully tested, and that there were contracts for royalties and various multi-million dollar offers to purchase the companies, the product, or its associated intellectual property. There was no evidence of tests or contracts,” the panel noted in its decision.
Instead of using investor funds — which he raised between December 2007 and February 2013 — as promised, “Skinner misappropriated them for personal expenditures, including transfers to his personal bank accounts, transfers to his son’s business, and large cash withdrawals for which he was unable to account,” it said.
In December 2024, Skinner was sentenced to eight years in prison and ordered to pay $2.4 million in restitution by a judge in the Alberta Court of King’s Bench.
The restitution ordered was less than the total amount of the fraud because one investor recovered about $500,000 from receivership proceedings involving companies that Skinner used to raise the funds, and another investor asked the Crown not to pursue restitution of $100,000 they lost in the scheme. Many of the victims were friends and family.
Skinner was given six years to pay the financial sanctions, and he faces five years of additional prison time if he does not make payment.
In imposing its ban on Skinner, the ASC said the offences involved securities, as the investors were supposed to receive shares in companies he created.
It also noted that ASC staff sought a ban against Skinner because he continued to raise funds even after his arrest, while out on bail with conditions that prohibited him from soliciting investors and raising more money.
“It was therefore staff’s position that we should exercise our discretion and issue permanent orders against him with a view to protecting investors and the Alberta capital market from future harm,” it said.
The panel agreed, concluding that “Skinner’s misconduct was extremely serious. It was a complex and deliberately orchestrated scheme that was based from the outset on falsehoods and continued for over five years. He fraudulently deprived at least 70 investors — many of whom were friends and neighbours who trusted him — of at least $2.97 million, and most are unlikely to recover their losses.”
It also noted that the harm goes beyond the affected investors, undermining confidence in the fairness and integrity of the capital markets.
“In light of the circumstances of the offences and the offender, we conclude that permanent sanctions are necessary,” it said. “Skinner presents a serious and ongoing threat, and he must never be permitted the privilege of access to the capital market in any capacity.”