ASC finds Blue Sky Resorts and others committed fraud

CALGARY, Oct. 17, 2012 /CNW/ - The Alberta Securities Commission (ASC) has found that Calgary-based Blue Sky Resorts Inc., related entities Mandyland Inc. and Blue Sky Lease Inc., and their principals Dennis Uhersky, Margaret Uhersky and Jeremy Davis defrauded investors and illegally traded and distributed securities in Alberta.

An ASC panel also found that:

• Dennis Uhersky, Jeremy Davis, Mandyland and Blue Sky Resorts made prohibited representations to prospective investors, and they and Blue Sky Lease made misrepresentations to investors; and
• Dennis Uhersky engaged in the unfair practice of putting unreasonable pressure on an investor to purchase securities.

The ASC panel concluded that from approximately August 2005 to July 2009 over $2.9 million was raised through the sale of the named companies' securities and deposited to their bank accounts.  The ASC panel found that, while almost $1.2 million of the money raised was used for legitimate business expenses, some $1.7 million was converted to the personal use or benefit of Dennis Uhersky, Margaret Uhersky, Jeremy Davis and their family, friends and business associates.

The ASC panel has set dates in November 2012, December 2012 and January 2013 for ASC staff and the named parties to provide written submissions on what, if any, orders ought to be made against the named parties.

A copy of the decision is available on the ASC website at www.albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws.  It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE: Alberta Securities Commission

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