ASC finds that Raymond Cawaling and RTAX Financial Corp. perpetrated a fraud on investors

CALGARY, AB, Dec. 18, 2024 /CNW/ - The Alberta Securities Commission (ASC) has found that Raymond Cawaling and RTAX Financial Corp. (the Respondents) illegally distributed securities and perpetrated a fraud by misleading investors and using investor funds for undisclosed and unauthorized purposes.

An ASC panel determined that between October 2016 and November 2019, the Respondents raised at least CAD$736,500 and US$174,085 from investors and misappropriated at least CAD$462,421 of that amount. The panel found that the Respondents told investors the funds would be used to invest in or provide loans to third parties, including an overseas mining company. A large portion of the money was instead redirected for personal use, to repay unrelated debts, and to pay principal and interest to other investors.

The proceeding will now move into a second phase to determine what, if any, orders for sanction or cost recovery ought to be made against the Respondents. The timing of the next steps will be set after hearing from the parties.

A copy of the decision is available on the ASC website at asc.ca.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting 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

For media inquiries: Tanja McMorris, Alberta Securities Commission, [email protected]; For investor inquiries: ASC Public Inquiries, Toll Free: 1-877-355-4488, [email protected]