The executive director of the BC Securities Commission (BCSC) has issued a notice of hearing alleging that Jeffrey Karl Wiegel and Michael Jerome Knight, both from B.C., and four real estate development companies illegally traded and distributed securities. The notice further alleges that Wiegel and Knight committed fraud, and that Knight breached a BCSC order.
In the notice of hearing, BCSC staff allege that between October 2006 and August 2010, Wiegel and Knight:
- illegally raised approximately $2,085,000 by distributing securities of 0772835 B.C. Ltd. to 32 B.C. residents;
- illegally raised approximately $1,940,000 by distributing securities of Local 1661 Building Inc. to 21 people, the majority of whom were B.C. residents;
- illegally issued a security in the form of a promissory note on behalf of Almaval Building Inc. to two 0772835 Ltd. investors in respect of a $100,000 loan; and
- committed fraud by falsely claiming that a promissory note would be secured by a mortgage on land located at 3701 West Broadway, Vancouver.
The notice further alleges that Knight breached an April 5, 2004, order that prohibited him from engaging in acts in furtherance of a trade or in investor relation activities for a period of three years.
The notice says that Wiegel, an officer and director of the four companies named in the notice, has never been registered to sell securities in B.C. The notice also says that Knight, a mutual funds registrant between 1992 and 1994, was not registered during the relevant period. Furthermore, none of the companies named in the notice has ever filed a prospectus in B.C.
