A Surrey, B.C. pastor, his son and a third man who told investors they were buying real estate in Edmonton instead used the money for personal expenses, a panel has determined.
The British Columbia Securities Commission said the trio – Alan and Jerry Braun and Steven Maxwell, who goes by the alias Steven Fassman – took $450,000 from two investors in three separate transactions.
"In each case, the prohibited act or deception clearly resulted in the risk of deprivation and, ultimately, actual deprivation to the investors," the panel said in its findings.
The findings also apply to the corporations Braun Developments Ltd., 8022275 Canada Inc. and TerraCorp Investment Ltd.
Two of the companies committed fraud involving three investments of $450,000, while the third committed fraud involving two investments of $300,000.
"The three men and the companies they controlled deceived the investors by leading them to believe that they were purchasing real estate investments in Edmonton that would yield very high returns in a short period," the BCSC said in a statement Wednesday.
But they never used the money to invest in real estate. Instead, they used the funds for other purposes including their own living expenses, the panel found.
Submissions on sanctions are due next month.
