The Alberta Securities Commission (ASC) and the Alberta RCMP Federal Policing Integrated Market Enforcement Team (IMET) have announced criminal charges against Kathleen Debra Kelley of Calgary, Alberta.
The charges stemmed from an investigation by the Joint Serious Offences Team (JSOT), which led to Kelley facing accusations of significant financial misconduct.
Kelley, also known as Kathy, has been charged with one count of fraud over $5,000 and one count of laundering the proceeds of crime, as per s. 380(1)(a) and 462.31(1)(a) of the Criminal Code, respectively. Allegations against Kelley involved her company, Lonestar Services Inc., through which she reportedly raised more than $2.4 million from investors. These funds were purportedly for investment primarily in the stock market, yet it is claimed that Kelley did not invest the money as promised.
Kelley's first court appearance is scheduled for May 28 at the Alberta Court of Justice in the Calgary Court Center.
The ASC highlighted its collaboration with IMET under the JSOT framework, which targets serious offences in the financial market, including repeat offenders and major frauds. The team's work often involves intricate investigations that require coordination with various financial and law enforcement bodies. In Kelley's case, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) played a crucial role in assisting the investigation.
JSOT's mandate is to enforce both quasi-criminal cases under the Securities Act (Alberta) and criminal offences related to securities under the Criminal Code. Its primary aim is to protect investors and enhance the integrity of the Alberta capital market through diligent investigation and prosecution of significant legal violations.
The ASC, which is responsible for administering Alberta’s securities laws, works in conjunction with IMET, a specialized unit under the RCMP. The agencies are expected to foster a fair and efficient capital market in Alberta, protect investors, and maintain public confidence in Canada’s financial systems.