ASC issues public interest orders in response to criminal fraud conviction against Nickolas Donovan Ellis

CALGARY, AB, March 27, 2024 /CNW/ - The Alberta Securities Commission (ASC) has issued an order permanently prohibiting Nickolas Donovan Ellis from participating in Alberta's capital market after he was convicted in the Court of King's Bench on eight counts of fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code. Ellis was also convicted of three counts of trafficking in forged documents and three counts of identity fraud and was sentenced to seven years in prison.

Six of Ellis' fraud convictions arose from two investment schemes, one involving the development and sale of a software application for a sports-related subscription service and the other a joint venture agreement to purchase and resell discontinued NHL jerseys. The remaining two fraud convictions stem from bridge financing for a construction project and a business acquisition scheme. All the schemes were elaborate fictions that targeted and defrauded eight Alberta investors of nearly $1.6 million, which Ellis retained for his own use. 

An ASC panel found that Ellis' fraud convictions arose from a course of conduct related to securities and that it was in the public interest to issue an order against him under the Securities Act (Alberta). The panel found that Ellis' deception and callous disregard for investors was especially serious.

The panel ordered that Ellis:

• must permanently cease trading in securities or derivatives, and that all exemptions contained in Alberta securities laws do not apply to him;
• must immediately resign all positions he holds, and is permanently prohibited from becoming or acting as a director or officer of any issuer, registrant, investment fund manager, recognized exchange, recognized self-regulatory organization, recognized clearing agency, recognized trade repository, designated rating organization or designated benchmark administrator; and
• is permanently prohibited from engaging in investor relations activities, advising in securities or derivatives, becoming or acting as a registrant, investment fund manager or promoter, and acting in a management or consultative capacity in connection with activities in the securities market.

A copy of the decision is available on the ASC website at asc.ca.

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.

SOURCE Alberta Securities Commission