ASC sanctions Victor George DeLaet for fraud against Focused Group investors

CALGARY, May 28, 2013 /CNW/ - The Alberta Securities Commission (ASC) has sanctioned Calgary-based businessman Victor George DeLaet for committing fraud against investors relating to the sale of securities of the Focused Life Group of Companies.  The ASC panel also sanctioned DeLaet and Stanley Kenneth Gitzel for making or permitting misleading or untrue statements to investors relating to the same securities.

Under the decision, the ASC panel ordered:

• DeLaet be permanently banned from trading in or purchasing any securities or exchange contracts, the use of all Alberta securities laws exemptions, and acting as a director or officer of any issuer;
• DeLaet pay an administrative penalty of $1.5 million and investigation and hearing costs of $40,000;
• Gitzel be banned from trading in or purchasing any securities or exchange contracts for five years, and the use of all Alberta securities laws exemptions and acting as a director or officer of any issuer for 10 years (with limited exceptions); and
• Gitzel pay an administrative penalty of $75,000 and investigation and hearing costs of $5,000.

The ASC panel ruled that for his key role in the misconduct and his failure to acknowledge the seriousness of his actions, DeLaet "presents a clear, current and continuing threat to investors and the capital market - and that, unless tightly and permanently constrained, he would remain a danger."

The ASC panel found that of the $47 million raised by the Focused Life Group of Companies, $35 million was raised via four documents that contained misleading or untrue statements.

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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