Embezzlement sanctions in Alberta: Pay $3.4 million

More than 200 people had invested in Summerside Plaza, which opened in 2015 south of Edmonton, Canada. The Alberta securities watchdog found that a Calgary man violated the province’s laws and ordered him to pay $3.4 million.

Last year, a panel from Alberta’s Alberta Securities Commission (ASC) found that Ali Ghani and five entities he controlled committed investment fraud through the development and sale of a shopping center south of Edmonton.

Nearly 200 people invested in Summerside Plaza and lost their investment when Ghani distributed $3.4 million from the sale to other projects without the investors’ knowledge or consent.

The ASC ordered Ghani and two companies he controlled to pay $3.4 million in damages for violating the law. Ghani and five entities he controlled – Summerside Development Trust, Summerside Commercial Trust, Prism Summersine Limited Partnership, Prism Summerside Development Corp. and Prism Real Estate Investment Corp. – must also pay a $350,000 administrative penalty and $173,983 in investigation and litigation costs.

It’s not his first time

Ghani previously admitted to violating Alberta securities laws in 2010 in relation to prohibited statements. He agreed to pay $35,000 to ASC and the allegations were withdrawn as part of a settlement agreement.

There is an interesting note in the board’s decision: “He may be tempted to re-enter the capital markets – a risk that should be avoided,” it said, noting that Ghani still has many years to work or find other ways to generate income.

US unveils its biggest sanctions package against Russia: But not its strongest steps