$1.8M to be doled out to victims of investment scam

Alberta investors who were bilked in a multi-million dollar scam are getting a chance to recoup some of their money.

At a hearing last June, Saileshwar Rao Narayan admitted to an Alberta Securities Commission panel that he defrauded and lied to investors and illegally traded in securities through two companies Prospera Mortgage Investment Corporation (PMIC) and Prosperity Development Group Ltd. (PDGL).

• Redistribute $1.8M of fraudster's frozen funds to his victims, securities commission asks court

During the investigation, the commission froze accounts belonging to PDGL and Narayan holding almost $1.8 million.

On Oct. 20, a Court of Queen's Bench judge granted a request by the commission to put a receiver in place to redistribute that money to investors.

A claims procedure for the assets of PMIC, PDGL and Prospera Management Corp. will be overseen by the receiver, MNP Ltd.

Investors must submit a Proof of Claim or Investment Loss Declaration form to the receiver, with supporting documentation,by 5 p.m. on Dec. 2.

Narayan, who raised over $5.8 million from the public for mortgage investments, was ordered to hand over almost $1.28 million and is permanently banned from trading in the market again.

He is also permanently prohibited from trading in or purchasingsecuritiesor derivatives under Albertasecuritieslaws.

And PMIC and PDGL are permanently prohibited from trading in or purchasingsecurities or derivatives under Albertasecuritieslaws.

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