The Alberta Securities Commission (ASC) has announced that Ronald James Aitkens has been sentenced to four years in jail for his conviction for fraud and making false or misleading statements in an offering memorandum under Alberta’s Securities Act, 2000.
In July 2020, Aitken was found guilty of the offences after an ASC investigation revealed that he had raised over $35 million from 1,475 investors through three offering memorandums between 2005-07 in relation to a real estate investment project known as Legacy Communities Inc. He diverted at least $10.7 million to other projects via his personal companies, the investigation found.
On Nov. 6, 2023, Aitkens failed to appear for his sentencing before the Alberta Court of Justice. A Canada-wide warrant for his arrest followed.
Aitkens was apprehended in Montana, U.S. just last Aug. 8. He was then returned to Canada to face sentencing. The next day, he appeared in court in BC where he was remanded into custody. On Aug. 12, the ASC announced in a news release his arrest and his return to Canada to face sentencing.
“Aitkens is a convicted fraudster and the ASC was determined to ensure he did not escape the consequences of his actions,” said Cynthia Campbell, the ASC’s director of enforcement, in the news release.
In the news release, Campbell commended the collaborative efforts of its investigators, its staff, and Canadian and U.S. law enforcement agencies in locating and apprehending Aitkens.
The ASC likewise acknowledged the assistance of agencies including the U.S. Marshals Service, U.S. Customs and Border Protection, U.S. Border Patrol, and the RCMP. Members of the public who responded to the ASC’s request for information during the search were also thanked.
Jail time set at four years
On Aug. 15, Justice Lloyd W. Robertson of the Alberta Court of Justice handed down a sentence of 39 months for fraud and an additional nine months for making false or misleading statements. He will serve these sentences consecutively, amounting to a total four years in jail.
Along with jail time, Justice Robertson upheld orders previously made in November 2023. Namely, Aitkens should immediately resign from any positions as a director or officer of any issuer and would be permanently prohibited from acting in those capacities.
The orders also barred Aitkens from trading or purchasing securities or derivatives, acting in a management or consultative role in the securities market, and using any exemptions under Alberta’s 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 Campbell in the ASC’s news release. “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.”
The ASC is Alberta’s regulatory agency for securities laws. It aims to foster a fair and efficient capital market and to protect investors. As a member of the Canadian Securities Administrators, the ASC also collaborates with other securities regulators to enhance overall regulation of the country’s capital markets.