Alberta investments for Mexican companies were used to buy a house in British Columbia

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A former Grande Prairie man who sold investors in a Mexican business venture used most of the money he got from stock offerings to buy a house in British Columbia, the dog has found Alberta Investment Custodian.

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Logan Keith Shaw and a numbered company he controlled, 1681502 Alberta Ltd., raised $940,000 from six investors who believed their investments would be used to develop and install point-of-sale technology in Mexican taxis, a heard from a panel from Alberta Securities.

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Instead, Shaw used about $808,000 of the fund to buy a house in Vernon, British Columbia, days after getting the money for his business Mexicar Inc. The account was also used for other personal expenses, investigators found.

“We have no doubt that Shaw’s conduct was deliberate and calculated to cause pecuniary loss to the investors – that is, the pecuniary loss was not merely a foreseeable risk, but an intended result,” wrote the panel in its decision.

Shaw, who represented himself at the hearing, collected the investments between September and October 2012. Mexicar was not incorporated in Alberta until July 2013, with Shaw being its sole director and shareholder, the decision states.

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“He does not appear to have any business activity or bank account,” the ruling reads.

The largest contribution came from an unidentified Calgary businessman who invested $500,000 in the company, according to ASC documents. It wasn’t until October 2017, five years after his initial investment, that he learned Shaw had used the money to buy the Okanagan home.

Shaw repaid the Calgary man’s $500,000 investment, plus $24,000 in interest, according to the ruling.

CSA’s review will continue to determine what, if any, penalties or cost recovery should be imposed on Shaw.

  1. Regulator issues warning of possible investment fraud

  2. The Alberta Securities Commission.

    ASC alleges Calgary businessman committed investment fraud

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