B.C. residents Alexander William Bridges and Shane Douglas Harder-Toews illegally solicited nearly $2 million from 13 investors and spent about one-quarter of those funds on themselves, a B.C. Securities Commission panel has ruled.
Bridges, a.k.a Alex Blackwell, and Harder-Toews committed fraud in doing so, the panel ruled on Nov. 17.
The two raised money and issued shares of Fraser Valley Hop Farms Inc. starting in March 2016. But when investors called foul the commission determined close to $500,000 of the $1.85 million was spent personally by the pair.
“The panel found that the diversion of funds to other uses by FVHF and Bridges violated the Securities Act’s prohibition against fraud,” stated the commission in a news release.
Bridges, the sole named director and Harder-Toews, the marketing director, also sold securities without a prospectus, a formal document outlining the investment to investors. They also never acquired a prospectus exemption.
Neither Bridges, Harder-Toews or any other company representative attended the commission hearing, which took place in May 2023, the news release stated.
The pair will face a disciplinary hearing next where they could face penalties including market prohibitions, fines and orders to repay investors.
The panel findings are administrative and not criminal. The commission may refer cases to police but generally does not disclose when it does so.
