Alberta Court sets deadline for Base Finance investors to assert claim to frozen account
CALGARY – The Alberta Securities Commission (ASC) is advising Base Financial Ltd. investors that the Alberta Court of Queen’s Bench has ordered that anyone who wishes to assert a trust entitlement to funds held in an account held by the company must file their application and supporting materials by January 7, 2016. Additional details are available on the receiver’s website in a document dated December 11, 2015: http://www.extranets.bdo.ca/base/.
Anyone with notice of the order who does not bring an application by that date will be deemed to have abandoned their right to make a claim.
On September 29, 2015, the ASC issued an order freezing funds in the Base Finance Ltd. account.
On October 15, 2015, the Alberta Court of Queen’s Bench issued an order appointing a receiver of the assets of Base Finance Ltd., Base Mortgage & Investments Ltd., Arnold Breitkreutz, Susan Breitkreutz, Susan Way and GP Energy Inc.
On November 23, 2015, an ASC panel extended an Interim Cease Trade Order against Arnold Breitkreutz, Susan Elizabeth Way, and two companies owned by Breitkreutz, Base Finance Ltd. and Base Mortgage & Investments Ltd., after considering evidence from ASC staff suggesting that the named parties traded and distributed securities without registration, a prospectus or applicable exemptions. The panel also expressed concerns about how investor money had been used and how the returns were funded. The Interim Cease Trade Order is in effect until any proceeding arising from ASC staff’s investigation of this matter is finally determined or otherwise concluded.
The ASC is the regulatory agency responsible for administering the province’s securities laws. It is entrusted with fostering a fair and efficient capital market in Alberta and with protecting investors. As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada’s capital markets.