Calgary (February 18, 2020) – The Alberta Securities Commission (ASC) and the Alberta RCMP laid charges against Nicholas John Felgate for securities fraud and money laundering in connection with trading promissory notes. The criminal charges entail eight counts of Fraud Over $5,000 and one count of laundering proceeds of crime. He is alleged of fraudulently raising over $2 million from eleven investors in so-called promissory notes between January 2015 and June 2018. Due to an Interim Cease Trade Order (ICTO), he was already banned from trading since March 2018. Felgate breached the ICTO allegedly at least twice after it became effective.
The Alberta Securities Commission (ASC) and the Alberta RCMP announced charges have been laid against Nicholas John Felgate from Rockyview in a press release from February 14.
$2 million in promissory notes
The enforcement partnership between the ASC, the RCMP Federal Policing’s Financial Integrity Program, and Alberta crown Prosecution Service – Joint Serious Offenses Team (JSOT) – investigated Felgate for alleged investment fraud and money laundering. As a result, he is accused of fraudulently raising over $2 million from 11 investors in Calgary, Airdrie, Camrose, Killam, Medicine Hat, and the surrounding areas between January 2015 and June 2018.
According to documents, Felgate referred to the investments variously as lender or loan agreements, asset agreements, or promissory notes. Fraudsters often claim promissory notes are not securities and that they are very safe investments since it is advertised as a loan that is backed by an asset like real estate. Typically, none of these claims are true. There are different names for money-making opportunities such as units, assets, shares, as well as loans or promissory notes. No matter the name, giving money with the expectation of a return is always a security and requires a registered seller.
The ASC and Alberta RCMP criminally charged Nicholas Felgate with 9 offences of fraud and money laundering. Felgate allegedly raised over $2 million from 11 investors in Calgary, Airdrie, Camrose, Killam, Medicine Hat and areas. https://t.co/zIOI8bJWxH pic.twitter.com/4G6OHDVcnm— Alberta Securities Commission (@ASCUpdates) February 14, 2020
The Interim Cease Trade Order
In March 2018, an Interim Cease Trade Order (ICTO) (Re Felgate, 2018 ABASC 35) was issued against Felgate requiring him to cease trading ‘in all securities and prohibiting him from using any exemptions contained in Alberta securities laws.’ The order stated that he is accused of having ‘contravened Alberta securities laws and acted contrary to the public interest.’
In August 2019, Felgate allegedly broke the ICTO by continuously trading the described promissory notes to at least two of the eleven investors, which are contained in the lawsuit, after the order became effective. The ASC informs that the ICTO remains in effect.
The criminal charges
As a result of the investigation of the JSOT, Felgate is now facing eight counts of fraud over $5,000 and one count of laundering proceeds of crime. He was scheduled to appear in court on February 14 regarding his fraud and money laundering offenses.
The ASC and RCMP ask that any investors who were or are solicited by Felgate to please contact ASC Public Inquiries at 1-877-355-4488 or email@example.com. Anyone who wishes to inquire fraud recovery information on their own case, or wishes to report fraud with whistleblower protection, please contact D. Slenys at 416-637-3151 or firstname.lastname@example.org.
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.