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Jul 28, 2022
CALGARY – July 28, 2022 – The Alberta Securities Commission (ASC) has sanctioned Allan Robert Magneson, 1111108 Alberta Ltd. (111 Alberta) and New Wave Innovations Ltd. (New Wave) for perpetrating fraud in connection with the sale of New Wave securities.
Between 2011 and 2016, Magneson raised approximately $7 million from New Wave investors who believed their investment funds would be used to develop a new type of dental drill that uses air-bearing turbine technology and does not emit a high-pitched whine like a standard dental drill. An ASC panel found that instead, Magneson fraudulently diverted at least $5.8 million of the funds raised for his and his family’s personal use.
The panel ordered permanent market access bans against Magneson and 111 Alberta. It also ordered that they pay to the ASC, jointly and severally, $3,561,952 obtained as a result of non-compliance with Alberta securities laws, an administrative penalty of $300,000 and $70,000 of the costs of the investigation and hearing. Until a preliminary prospectus and prospectus are filed with the ASC, all trading in or purchasing of securities or derivatives of New Wave must cease, New Wave must cease trading in or purchasing securities or derivatives, and all exemptions contained in Alberta securities laws do not apply to New Wave.
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.
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