ASC finds Edmonton businessman guilty of fraud

CALGARY, AB, Aug. 16, 2021 /CNW/ - The Alberta Securities Commission (ASC) has issued a decision finding that New Wave Innovations Ltd., 1111108 Alberta Ltd. and Allan Robert Magneson perpetrated fraud in connection with the sale of securities in New Wave.

Magneson raised as much as $7 million or more from New Wave investors between 2011 and 2016, who understood their investment funds would be used to develop a new type of dental drill that uses air-bearing turbine technology and does not emit a high-pitched whine like a standard dental drill. The ASC panel found that Magneson instead engaged in fraud by diverting at least $5.8 million of the funds raised to his personal use or for the benefit of his family. In the decision, the panel stated, "Magneson perpetrated his fraud… by using New Wave to raise funds from investors, and 111 Alberta as the conduit through which most of that money was diverted to his personal use."

A hearing management session will be held on August 25, 2021 to outline the process required to determine what, if any, orders for sanction or cost-recovery ought to be made against New Wave, 111 Alberta and Magneson.

In November 2017, the ASC issued an Interim Order restricting trading in securities of New Wave, and banning Magneson from acting as a director or officer of New Wave. The order remains in effect until proceedings have concluded.

A copy of the decision is is available on the ASC website at albertasecurities.com.

The ASC is the regulatory agency responsible for administering the province's securities laws. It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets.

SOURCE Alberta Securities Commission