Lethbridge man from bankrupt developer fined $500K by Saskatchewan financial regulators

By Medicine Hat News on July 31, 2019.

A man whose now bankrupt company once took over the Cimarron land development in Medicine Hat has been fined $500,000 by financial regulators in Saskatchewan.

Ron Aitkens, of Lethbridge, is further barred for life from trading securities in that province after a decision by the Financial and Consumer Affairs Authority of Saskatchewan in late June.

Related: Supreme Court dismisses defrauding appeal

It states that Aitken and his firms, loosely known as the Foundation Group of Companies, committed a fraud by illegally raising $10.4 million from investors in that province for a variety of land development projects.

That cash was transferred to other companies under Aitkens’ control or to make payments to other investors in an attempt to obscure the health of businesses to investors, regulators found.

The fine consists of $100,000 for each of four companies that raised funds, plus administrative costs for the panel hearing.

Aitkens nor his legal counsel attended the hearing.

The matter is also before the Alberta Securities Commission, which is currently contemplating sanctions after hearings last February determined the merit of the case against Aitkens and former Medicine Hatter Roy Beyer, a senior official with Foundation.

A criminal charge of fraud has been laid against Aitken.

A foundation-related company bought a proposal to build a 16,000-home community in southwest Medicine Hat known as Cimarron in 2010 from local builder Medican as it was about to enter receivership. The foundation followed suit in 2011 and the land acquired for the ambitious project was handed to creditors while land under contract was retained by the owners.

Part of that proposed site is now part of the proposed Coulee Ridge development, currently underway in Medicine Hat, though there is no connection to either previous developer.

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