Before Concrete Equities went into receivership in spring 2009, it used to be a major advertiser/sponsor of CBC Dragons’ Den and many people got to know about the company through those ads. Sadly, “More than 3,700 investors, most of whom are from Calgary, lost more than $100 million through investments with Concrete Equities.” It is sad that many people had to learn the lesson in such a hard way.
For the record.
From CBC News “Alleged Alta. securities breaches under review” (Monday Feb 14, 2011) (emphasis added),
“A hearing into a Calgary real estate investment firm’s alleged breaches of Alberta securities law got underway Monday.
Four former directors of Concrete Equities, which went into receivership in 2009, are accused of acting as dealers without being registered, not filing prospectus and making misrepresentations to investors. […]
More than 3,700 investors, most of whom are from Calgary, lost more than $100 million through investments with Concrete Equities.“
From Calgary Herald “Concrete Equities under scrutiny at hearing – ASC to determine if now-defunct Calgary company misled investors” (Feb 15, 2011) (emphasis added),
“Monday, lawyers for the ASC outlined the case they hope to prove, which includes investors who were promised returns of more than 600 per cent and told the investments were risk free, as well as those who weren’t told of marketing commissions of between seven and 10 per cent being paid to Concrete Equities.
“You will hear evidence in the course of this hearing that Concrete Equities Inc., in raising capital in Alberta, failed to disclose certain information to its investors in its offering memoranda, which the investors will say was information that they would wanted to have known when they made their investment,” ASC counsel Andrew Wilson told the panel of three hearing the case. […]
The ASC allegations involve David Jones, David Humeniuk, Varun Vinny Aurora and Vincenzo De Palma and six limited partnerships.
Neil Narfason, a senior vice-president at receiver Ernst & Young, told the hearing Concrete Equities – which raised $118 million from 3,700 investors – couldn’t list all its bank accounts and had accounting and bookkeeping standards that were below expectations.
“All the basic stuff was not there,” Narfason said, referring to ledgers, financial statements, tax returns and bank statements that were missing or incomplete. “It’s unusual for a company in that business not to have a handle on funds.” Read the rest of this entry »