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.”
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.”
The Observer was unable to contact Donald Bergman or the All Canadian Investment Corporation. 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 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.