The director of a company that allegedly promised risk-free, high-return investments in renewable energy projects in developing countries via Craigslist has been handed a $50,000 fine and lifetime securities trading ban.
Samuel Richard Allaby received the ban following an investigation and hearing by the BC Securities Commission.
A BCSC hearing panel found that Allaby knowingly made false claims while promoting Gaia Equity Investments, a division of Midas Group Holdings Ltd. The BCSC says Allaby is the sole director of Midas Group.
According to the BCSC, the investment scheme was being promoted on Craiglist under Financial Services.
Contacted by an BCSC investigator posing as a potential investor, someone from Gaia responded with an investment agreement form containing “numerous false statements and instructions for depositing money in a bank account,” according to a BCSC press release.
Among the claims made about the Gaia investment was a risk-free monthly return of up to 9.83% on investments in renewable energy projects in developing countries.
In March, after the BCSC announced Allaby would be the subject of a hearing, Allaby contacted Business in Vancouver and claimed he knew nothing about the scam.
“I’ve never owned a Gaia equity,” Allaby told BIV. “Ironically though, I did own a bank account for a Midas Group Holdings, which was supposed to be a subsidy of my online marketing company. It’s never had money in or out.”
Allaby is associated, however, with Gaia Promotions, which is billed as an Internet marketing and SEO consulting service.
Allaby could not be reached for comment Wednesday, after the BCSC announced the sanctions against him.
