The Alberta Securities Commission has permanently banned Robert Harris, operating as Harris Agencies, from the Alberta capital market and has levied a fine for operating a Ponzi scheme and perpetrating fraud.
The ASC says they found that Harris:
- Traded and acted as a dealer in securities in Alberta without being registered to do so
- Illegally distributed securities in Alberta
- Made misleading and untrue statements to Alberta investors
- Perpetrated a fraud on Alberta investors
- Acted contrary to the public interest
The ASC panel ordered Harris, operating as Harris Agencies, to pay a $500,000 administrative penalty and $13,000 in investigation and hearing costs.
The ASC is responsible for administering the province's securities laws and is entrusted to ensure a fair and efficient capital market in Alberta and to protect investors.
The ASC says that during the hearing, Harris admitted that he controlled and operated a real estate investment club that raised at least $5 to $6 million from about 200 investors from 2000 to 2010.
The ASC panel , in determining the sanctions, took into account that:
- the investment club "was a fraud and operated as a Ponzi scheme "
- that [he] "was solely responsible for this fraudulent scheme" and
- that [he] "made misleading and untrue statements to induce Alberta investors to invest in the Club"
The ASC panel said that Harris, operating as Harris Agencies, had engaged in conduct that "was reprehensible and completely inconsistent with the public interest."
A copy of the decision can be found on the ASC website.
