Edmonton biofuel businessman fined for breaching securities laws
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An Edmonton businessman has settled with the province's securities regulator after admitting to misleading investors.
On Thursday, the Alberta Securities Commission announced it concluded a settlement agreement with David Gregor McClure after he admitted to breaching provincial securities laws.
He is to pay the commission a penalty of $80,000.
The Edmonton resident was involved in the biofuels industry and was in charge of multiple incorporated companies and investment corporations.
He admitted to distributing shares of Bedford Biofuels Inc., Bedford Biofuels Tana Delta Phase 1 Investment Corporation, Art Without Borders Inc. and Bella Bay Investments (Barbados) Inc. without being registered to do so. He also broke Alberta securities laws by not filing a preliminary prospectus or prospectus — the disclosure documents that help investors make informed decisions.
In addition, McClure admitted to unregistered trading of Art Without Borders and Bella Bay securities.
Bedford Biofuels planned to plant jatropha in Africa, an oilseed once touted as one of the most promising biofuels in the world. From roughly 2009 to 2012, Bedford and Tana Delta, a company owned by Bedford, brought in more than $16 million from investors.
McClure raised more than one million dollars by selling shares to investors who did not qualify for exemptions under Alberta securities laws, a news release said, including $975,000 for Bedford, $72,000 for Bedford Tana Delta, $125,000 for Art Without Borders and $200,000 for Bella Bay.
McClure also admitted to telling three investors of the "imminent sale" of Bedford to Asian buyers. He collected $450,000 from the investors, but when he made the statements, no actual buyers existed.
As part of the settlement, McClure will pay $80,000 to the Alberta Securities Commission and resign from all positions where he is "a director or officer of any issuer that relies on exemptions under Alberta securities laws or that distributes securities to the public."
He also agreed to stay away from certain parts of the securities market for three years, including trading in or purchasing securities or derivatives with "limited exceptions."
In a statement, Alberta Securities Commission spokeswoman Nicole Tuncay said the commission is "not authorized to get money back for investors."
"If an investor has lost money due to a violation of securities law, they should obtain legal advice to determine what options — such as the civil courts — are available to them," Tuncay said.
jwakefield@postmedia.com
