ASC issues public interest orders in response to criminal fraud conviction against James Russell Neilson

CALGARY, AB, Oct. 21, 2022 /CNW/ - The Alberta Securities Commission (ASC) has issued an order permanently prohibiting James Russell Neilson from participating in Alberta's capital market after he was convicted in the Court of Queen's Bench on three counts of fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code. Neilson, who worked as an accountant in Canmore, Alberta, was also convicted for theft and money laundering and he received a sentence of five and a half years' imprisonment.

Two of Neilson's fraud convictions arose from fraudulent representations he made in conjunction with investments in ABACA Solutions Inc. (ABACA) and APO Group Inc. that grossly overstated ABACA's financial situation. In some cases, Neilson showed investors fraudulently manufactured banking and financial statements to convince them to invest. Seven individuals paid Neilson nearly $1.2 million for shares in ABACA, while a corporate investor paid approximately $1 million in a separate transaction. Although more than $600,000 was recovered, Neilson spent $35,000 on personal luxury items and he transferred funds to offshore accounts or into cash, which made it virtually impossible to trace or recover investors' funds.

An ASC panel found that these two fraud convictions arose from a transaction and a course of conduct related to securities as defined in the Securities Act (Alberta) and that it was in the public interest to issue permanent market-access bans against Neilson to protect Alberta investors and the Alberta capital market.

The panel ordered that Neilson:

• must permanently cease trading in securities or derivatives, and that all exemptions contained in Alberta securities laws do not apply to him;
• must immediately resign all positions he holds, and is permanently prohibited from becoming or acting as a director or officer of any issuer, registrant, investment fund manager, recognized exchange, recognized self-regulatory organization, recognized clearing agency, recognized trade repository, designated rating organization or designated benchmark administrator; and
• is permanently prohibited from engaging in investor relations activities, advising in securities or derivatives, becoming or acting as a registrant, investment fund manager or promoter, and acting in a management or consultative capacity in connection with activities in the securities market.

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: Theresa Schroder, Senior Advisor, Communications, [email protected]; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488