Save the Date for the Alberta Securities Commission: August 13, 2018

It’s been a long time, but hey, we’ve been busy retooling our life from deaf, to #deafnotdeaf. Mrs. Solagratia’s Cochlear implant is a miracle and we’re just overjoyed and under-grateful. There just isn’t enough gratitude.

The funny thing about Cochlear Implants is that you mark your life by calendar dates. For example, candidacy day (the day you find out if you get a CI or not) was October 5. Implant surgery was December 12. Activation was January 29. Each date has its own moments, anxieties, and story.

The ABC District and by Extension LCC has a red-letter date its own: August 13, 2018. That’s the day the Alberta Securities Commission is going to hold a hearing because, the ASC says…

“1. Staff of the Commission allege that the Respondents breached Alberta securities laws in connection with a long-term, large-scale investment program. The program generally was designed to provide a means for church members to invest and earn interest on funds by pooling and loaning them to Lutheran churches and schools for capital improvement projects. However, while  representing the investments to be safe, diversified, and “guaranteed”, the Respondents placed the overwhelming majority of the invested funds into a high-risk, loan-defaulting, speculative land development project without appropriate disclosure to investors. The program and the corporate Respondents collapsed financially in early 2015, with court protection under the Companies’ Creditors Arrangement Act (CCAA) being sought and granted.

2. Staff allege that the long pattern of positive representations, without including necessary risk related disclosures, amounted to misleading statements. The Respondents knew or ought to have  known that the information withheld from investors was material, and meant that the statements which had been made were misleading. The Respondents knew or ought to have known that the price or value of the securities in issue was dramatically affected by the non-disclosures.

3. Investors in the program have lost many millions of dollars as a result of its collapse, with the exact value not yet determined. In recognition of investors’ losses and in order not to deplete assets  that may be available in ongoing CCAA proceedings, Staff will seek no monetary administrative penalties against the corporate Respondents.”

So, in spite of the many protestations of being nice people, the Alberta Securities Commission alleges ABC District breached securities laws and mislead church members/depositors. In order NOT to cause more loss to the investors, the ASC isn’t going to go after money from District. Which is nice. It’s more than District or Synod have ever done for depositors in meaningful terms (any defence to the contrary is silly because…well…the ASC says “breached securities laws,” and depositors are suing District, so there’s that.

As is the way in LCC, the gospel will take the back seat; lawyers and the courts will have the final say.

Click here for the entire Alberta Securities Commission Document

Andreas Schwabe is editor and publisher of SolaGratia.ca, and an Edmonton-based multimedia & communication strategist and producer. His focus for SolaGratia is on administration, governance, and issues of faith. For clients, he writes or produces just about anything.

3 thoughts on “Save the Date for the Alberta Securities Commission: August 13, 2018

  1. Sadly, the church should have been doing a lot of soul searching between 2015 and yesterday. It hasn’t. It probably won’t.

  2. ANO

    Glad to see this day. If the Right Hand won’t clean house then the Lord’s left hand is certainly able to pull the curtain back and expose it for all the world to see.

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