Man facing fraud sentencing reportedly left country
By COLLIN GALLANT on November 16, 2023.
cgallant@medicinehatnews.com@CollinGallant A Lethbridge man set to be sentenced for defrauding thousands of investors has left the country, according to lawyers for the Alberta Securities Commission, and a warrant for his arrest has been expanded. Ronald James Aitkens faces a maximum of five years less one day in prison and potentially up to $5 million fines for his actions as head of the Foundation Group of Companies. That real estate development firm solicited hundreds of millions of dollars from investors to buy land and move forward on building new communities, commercial and industrial sites. But, as returns were set to be paid out in 2012, the companies began to move one by one into court creditor protection proceedings. Eventually the Alberta Securities Commission sanctioned Aitkens for improperly moving funds between companies and accused him of criminal fraud, for which he was convicted in 2020. At Calgary Court of Justice on Tuesday, Aitkens again failed to appear at a set sentencing hearing, where ASC lawyers said they believe he had left the country and requested an arrest warrant be expanded across Canada. Through an agent, defence attorneys stated they had no information about his whereabouts. “The court has been ready to deliver its sentence in this matter for quite sometime,” said Justice L.W. Robertson. “And I’ve prepared a written decision outlining the sentence … and came prepared to deliver the decision today and as well on Oct. 23. “I’ve concluded that the matter will remain at warrant and I’ll deliver my decision on sentence when he is brought before the court.” While pausing the criminal sentencing, Robertson did order on behalf of the ASC regarding securities offences. Aitkens is permanently barred from trading securities or acting as a director, manager or adviser to any company that issues securities. Potential restitution will be dealt with at criminal sentencing, said Robertson. Criminal sentencing in 2020 was originally delayed by the pandemic and then several personal medical emergencies, most recently in October when the court was informed Aitkens was recovering from a bout of COVID. Aitkens’ lawyer said at the next scheduled date this month they had no information about their client’s whereabouts or any reason for his absence. An arrest warrant was issued at that time. ASC lawyers said Wednesday they had information that Aitkens entered the U.S. on Nov. 6 – the day of his recent court date – and they don’t believe he has returned. The collapse of the Foundation Group left dozens of secured creditors – mortgage holders and lenders – paid out at 5-cents on the dollar, and thousands of unsecured investors mostly unpaid. A successful class action lawsuit sought $250 million to rectify their losses. Dozens of Medicine Hatters appear on creditors lists of Foundation companies, each owed between $10,000 and $200,000, as presented in bankruptcy hearings. Those development holding companies included Harvest GP, which purchased the Cimarron project in southwest Medicine Hat. Only a small portion of the proposed community were even under Harvest Control however, and were awarded to a mortgage holder during the bankruptcy proceedings. 22-21
