Ronald James Aitkens sentenced to four years in jail for fraud and misleading statements

CALGARY, AB, Aug. 15, 2024 /CNW/ - The Alberta Securities Commission (ASC) announces that Ronald James Aitkens was sentenced to four years in jail by the Honourable Justice L.W. Robertson of the Alberta Court of Justice, on August 15, 2024.

Following an investigation by the ASC and a subsequent trial in the Alberta Court of Justice, Aitkens was convicted in July 2020 on one count each of fraud and making false or misleading statements in an offering memorandum, contrary to the Securities Act (Alberta). The convictions stem from the distribution and sale of securities, through the use of the offering memorandum exemption, in a real estate investment opportunity known as Legacy Communities Inc. Aitkens raised over $35 million through three offering memorandums between 2005 and 2007 with 1,475 investors. He diverted at least $10.7 million to other projects through his personal companies.

After being found guilty, Aitkens failed to appear for sentencing before Justice Robertson on November 6, 2023, and a Canada-wide warrant was issued for his arrest. On August 8, 2024, Aitkens was arrested in Montana, U.S. and returned to Canada.

Justice Robertson ordered a total sentence of four years in jail, apportioned as 39 months on the fraud conviction and nine months on the misleading statements conviction, to be served consecutively. Orders made by Justice Robertson in November 2023 remain in effect, namely, that Aitkens immediately resign all positions that he holds as a director or officer of any issuer and is permanently prohibited from:

• Acting as a director or officer of an issuer;
• Trading in or purchasing securities or derivatives;
• Acting in a management or consultative capacity in connection with activities in the securities market; and
• Using any exemption contained in Alberta securities laws.

"This sentence clearly demonstrates that those who defraud investors will face consequences for their actions no matter where they try to hide," said Cynthia Campbell, Director of Enforcement at the ASC. "The ASC is committed to securing appropriate sentences of imprisonment for such offenders and ensuring that fleeing the country will not shield them from accountability."

A copy of the Reasons for Decision and Sentencing Judgment are 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 further information please contact: For media inquiries: Tanja McMorris, Senior Advisor, Communications, [email protected]; For investor inquiries: ASC Public Inquiries, Toll Free 1.877.355.4488