(File photo)

A Shuswap mortgage investment corporation faces BC Securities hearing

Securities commission alleges misrepresentations and false or misleading statements in documents

A Salmon Arm man and his mortgage investment corporation are facing allegations from the British Columbia Securities Commission.

The securities commission alleges that Donald Bergman and All Canadian Investment Corporation (ACIC) made misrepresentations and false or misleading statements in documents required to be filed under the Securities Act.

A mortgage investment corporation is a company that purchases mortgages for investment purposes.

According to a news release issued by the commission, Bergman was the sole director of ACIC, which provided loans to owners and developers of residential and commercial real estate. The loans were secured by mortgages on those properties.

“ACIC raised $1.6 million from more than 50 investors between February 2014 and December 2015 through three offering memorandums that explained how the loans would be secured. An offering memorandum must contain specific information about an investment to help potential investors make a decision on whether to purchase the security.”

Read more: B.C. man, two firms duped investors with $5-million Ponzi scheme, regulator says

Read more: Commission censures Sasseville

The offering memorandums (documents that state objectives, risks and terms of investment) said the mortgages would be registered in the appropriate land title office, and were the first or second mortgage on the property. But ACIC cancelled some of the registrations, and some of its mortgage loans were secured by potentially more risky mortgages than represented, states the commission.

“The BCSC alleges that Bergman and ACIC made false or misleading statements in the offering memorandums because some of the loans were not secured as promised. By doing so, the BCSC alleges that they also made misrepresentations to investors.”

Black Press was unable to contact Donald Bergman or the All Canadian Investment Corporation in Salmon Arm. Two addresses listed on the Internet were not home to the company and two telephone numbers listed were currently either disconnected or no longer in service.

The allegations have not been proven and the securities commission will hold a hearing on March 11 in Vancouver.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act.



marthawickett@saobserver.net

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Child care planned for Vernon schools

Proposal for four facilities at area elementary sites

Majority of students back in Vernon classrooms

Vernon School District reports 95 per cent of students returned amid COVID-19

Fewer people, but more visits added to Vernon museum

‘Often, you may have the entire museum to yourself and your group, which could be very cool.’

Travel from Coldstream to Lake Country along Kal Crystal Waters trail

Completed extension on Kal Crystal Waters trail uses historic highway

Major UBCO bus changes from Vernon eliminate Oyama, include Kelowna

Oyama Isthmus loop removed, stop across from Kelowna airport added

Record-breaking 165 new COVID-19 cases diagnosed in B.C. in 24-hour period

Fifty-seven people are in hospital battling the novel coronavirus

Interior Health reports four new cases of COVID-19

First hospitalization since mid-August announced

Rail traffic starts moving after 60-car derailment near Hope

Clean up effort ongoing after 60 cars carrying potash crashed along a rail bridge

Spoon-wielding man draws police presence in Penticton

Police say no one was harmed during the incident

B.C.’s COVID-19 economic recovery plan: Top 5 things you need to know

Jobs training, tax incentives for employers to hire staff and more

March to protect old growth, stop industrial logging coming to B.C. Legislature

Organizers say they want to give frontline communities a bigger say in nearby logging

B.C. releases details of $1.5B economic recovery plan, $660M in business tax incentives

Economic plan includes support for employers, as well as training for workers

‘Not criminally responsible’ hearing slated for man convicted of Abbotsford school stabbing

Gabriel Klein was found guilty in March of killing Letisha Reimer, 13, in 2016

Most Read