Alberta Securities Commission and RCMP join forces to fight financial crime

By Bill Graveland, The Canadian Press

CALGARY – The long arm of the law just got a little longer in Alberta thanks to a new unit focusing on white-collar crime.

The Alberta Securities Commission, the regulatory agency responsible for administering provincial securities laws, and the RCMP are forming the Joint Serious Offences Team. The unit is to investigate and prosecute cases under Alberta’s Securities Act as well as more serious offences that fall under the Criminal Code.

A specialized prosecutor will pursue any criminal charges resulting from investigations.

The nine-member unit — made up of investigators, forensic accountants, legal professionals and RCMP officers — will target repeat offenders, serious frauds and breaches of court orders and bans.

“Offenders keep getting more sophisticated,” Stan Magidson, chairman and CEO of the securities commission, said Wednesday. “In a downturned economy like ours, many individuals are struggling to make ends meet and are willing to take greater risks with their investments.

“In addition, we are seeing more links between securities offences and organized crime. The money, once stolen, is often transferred offshore, making it extremely difficult to trace and essentially impossible to recover.”

Magidson said that in the past the securities commission and RCMP have conducted parallel investigations and prosecutions.

One such case involved one of the largest Ponzi schemes in Canadian history, he said.

Gary Sorenson and Milowe Brost were given 12 years in prison for an elaborate, multimillion-dollar fraud in which investors were promised unrealistic returns. The two men were sentenced in Calgary last year for their crimes which involved more than 2,400 investors from around the world with losses up to $200 million.

“The ASC certainly brought those individuals to task for their crimes and were successful in issuing sentences and penalties. At the same time, the RCMP also pursued them, and they’re now serving up to 12 years in jail,” said Magidson.

“In a way, that was an example where we both succeeded, but had we actually worked together, it could have been more efficient.”

RCMP Insp. Allan Lai said the collaboration will provide more access to information and intelligence collected provincially, as well as through national and international networks.

In the end, he said, it will bolster the case for stricter punishment of those found guilty.

“It’s looking at the recidivists, targeting repeat offenders of the securities act, that continue to violate the regulatory process,” said Lai.

“The (Joint Serious Offences Team) opens up that avenue, allowing us to investigate these crimes criminally which would involve jail time, higher penalties and ultimately a criminal record on these individuals.”

Magidson said RCMP input could also help prevent some of the crimes in the first place.

“One of the powers the RCMP has that we don’t have is wire tap capability,” he said.

“Arguably, if we see something and working jointly … we may be able to listen in on some conversations before the nasty deed is done.”

— Follow @BillGraveland on Twitter

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