CALGARY -- Securities regulators allege a Calgary man broke the law with his company that invests in cryptocurrencies when he did not give investors a prospectus.

The Alberta Securities Commission (ASC) says Jan Gregory Cerato, also known as Jan Strzepka, convinced others to pool their money together and invest in Bitcoins in order to return a profit.

Cerato's fund, known as the "Whale Club", began soliciting for investments in December 2017 and raised at least $190,000.

The notice of hearing states he told investors to transfer funds to him by:

  • Depositing funds into the bank account of Stylewerx Communications Inc.
  • Depositing funds into the bank account of 2095912 Alberta Inc.
  • Depositing Bitcoin into a virtual wallet controlled by Cerato

According to the notice, Cerato did not give any documents or receipts to buyers as part of the sale, something that is required by Alberta securities laws. He also did not qualify for an exemption that would not have required him to complete that part of the transactions.

The hearing is scheduled to take place in Calgary on Apr. 15.

The allegations have not been proven.