ASC sanctions Tinashe (Nash) Sylvester Nyadongo and Future Growth Investments for breaching Alberta securities laws

CALGARY, AB, March 2, 2022 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Tinashe (Nash) Sylvester Nyadongo and 10194131 Canada Ltd., doing business as Future Growth Investments, for illegally distributing securities of Future Growth Investments and perpetrating a fraud on certain investors.

The respondents signed a Statement of Admissions and Joint Submission on Sanction acknowledging that Future Growth Investments raised at least $1.2 million from selling shares to approximately 28 Canadian investors, 10 of whom were Alberta residents, between November 2017 and March 2019. Nyadongo, while employed by Olympia Trust Company, sold the shares to investors who had wanted to "unlock" their locked-in retirement accounts (commonly referred to as LIRAs) or invest in certain other opportunities.

An ASC panel found that the share sales were distributions of securities conducted without a prospectus or a prospectus exemption, contrary to the Securities Act (Alberta). The panel also found that Nyadongo and Future Growth Investments misled investors about how their funds would be used and misappropriated the funds for personal use and other unauthorized uses.

The panel ordered that:

• Nyadongo pay an administrative penalty of $150,000, disgorgement of $234,000 and costs of $10,000, that he resign all positions he holds as a director or officer of any issuer or registrant and that he is subject to an array of market access bans for a period of 20 years from the date of the decision or until the administrative penalty is paid in full, whichever is later; and
• With permanent effect, all trading in or purchasing of securities or derivatives of Future Growth Investments must cease, that Future Growth Investments must cease trading in or purchasing securities or derivatives, and that all exemptions contained in Alberta securities laws do not apply to Future Growth Investments.

The ASC gratefully acknowledges the assistance of the RCMP and the Manitoba Securities Commission in this matter.

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

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, 587.830.4286; For Investor Inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488