Fraud alleged against three men involved in failed Sage Hills project

The B.C. Securities Commission has accused three men of defrauding investors in the failed Sage Hills development in Royston.

The B.C. Securities Commission has accused three men of defrauding investors in the failed Sage Hills development in Royston.

In a notice of hearing, the BCSC alleges that Theodore Robert Everett, Leonard George Ralph and Robert H. Duke, and two B.C. companies, committed fraud and illegally distributed securities.

The notice alleges that between 2002 and 2011, Independent Academies Canada raised $7.3 million from at least 150 investors to develop a business concept combining sports, educational, wellness and residential components into one complex. In 2006, IAC purchased the 2,083-acre Sage Hills property. Everett, Ralph and Duke are all directors and officers of IAC.

In a news release, the BCSC says at least 122 investors had spent nearly $6 million. IAC filed 36 exempt distribution reports purporting to rely on exemptions from prospectus and registration requirements. The commission contends that only 15 of the investors qualified for an exemption, thereby rendering much of the distribution illegal.

In 2009, foreclosure proceedings were commenced against the property. The notice alleges the respondents committed fraud by failing to disclose this information while continuing to market and sell IAC securities to 61 investors, raising about $1.49 million.

With federal funds, the Province purchased the Sage Hills property. The Supreme Court of B.C. approved the deal in September.

Victoria-based IAC planned to build a private sports academy and a K to 12 school that included specialized university programs. The company also wanted to create an ice sheet and a regional park where the property borders the Trent River.

The land will be included in the final settlement package in K’ómoks First Nation treaty negotiations, says the Ministry of Aboriginal Relations and Reconciliation.

Just Posted

Comox Valley golfers prepare for another 55+ Games

Competition, camaraderie name of the game

Comox Valley firefighters assist with wildfire effort

Four Courtenay firefighters are in Fort St. James helping with the fight… Continue reading

Woman rescued from Stotan Falls calling for safety measures

3L Developments did not comment on immediate plans to add safety precautions

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

More than 22,000 blood donors needed

Canadian Blood Services is urging Canadians to help meet patients’ needs this… Continue reading

Kim XO is Black Press Media’s fashionista

Starting Sept. 7, stylist Kim XO will host Fashion Fridays on the Life channel on Black Press Meida

Minister optimistic after 2 days of Columbia River Treaty negotiations

Canadian and U.S. officials met in Nelson Wednesday and Thursday to discuss future of the treaty

Man dies in B.C. police cell while awaiting court hearing

An independent investigation is underway after a man died while in Penticton police custody Aug. 16

RCMP appeal for tips, dashcam footage in German tourist shooting west of Calgary

The Durango crashed into the ditch after the shooting near the Goodstoney Rodeo Centre

2 nurses attacked at B.C. psych hospital, union calls for in-unit security

PHSA says that in-unit guards would do more harm than good

Former B.C. optician won’t be jailed for sexually assaulting minor

Kenneth Pilkington sentenced to 24 months’ probation for offence three decades ago

Red Cross now accepting donations for those impacted by B.C. wildfires

The Canadian Red Cross is asking for help now and in the weeks and months ahead.

B.C. program to educate parents reduces ‘shaken baby syndrome’ by 35%

Period of PURPLE Crying was launched nearly a decade ago

UPDATED: Vancouver Island community under evacuation alert due to wildfire

BC Wildfire Service says steep terrain near Zeballos poses challenge as “out of control” wildfire approaches homes

Most Read