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 He agreed to pay $35,000 to ASC and the allegations were withdrawn as part of a settlement agreement.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.
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