News Release
Recidivist John Carlos Labun sentenced to two years’ imprisonment for fraud and breaches of ASC order
Jul 24, 2019
CALGARY – July 24, 2019 – The Alberta Securities Commission (ASC) and the Alberta RCMP announced today that John Carlos Labun of Calgary was convicted and sentenced to two years’ imprisonment after pleading guilty to one count of fraud and three counts of failure to comply with an ASC order. The sentence was handed down Monday at the Provincial Court of Alberta in Calgary.
Alberta Provincial Court Judge M.C. Dinkel also ordered that Labun pay restitution totaling $302,300 to eight investors and be permanently banned from: a number of activities including:
- trading in or purchasing any securities or derivatives;
- becoming or acting as a director or officer, or both, of any issuer;
- advising in securities or derivatives; or engaging in investor relations activities; and,
- relying on exemptions in Alberta securities laws.
Labun fraudulently raised money from investors between December 2013 and February 2017 in Calgary, Alberta. A portion of the capital raising in 2016 occurred while Labun was subject to a ban that had been imposed by an ASC panel in a previous proceeding on an unrelated matter. Charges were laid following an investigation by the Joint Serious Offences Team (JSOT).
JSOT gratefully acknowledges the assistance of the Calgary Police Service, Service Alberta, Strategic and Registry Services, and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in this matter.
JSOT is an enforcement partnership between the ASC, the RCMP Federal Policing’s Financial Integrity Program and Alberta Crown Prosecution Service. JSOT investigates and prosecutes quasi-criminal cases under the Securities Act (Alberta) and certain securities-related criminal offences under the Criminal Code. In particular, JSOT targets repeat offenders, serious frauds and breaches of ASC or court orders and bans. The primary objective is to protect investors and further enhance confidence in the Alberta capital market through collaborative investigations and prosecutions of serious violations of the law using the provisions of the Securities Act (Alberta) or the Criminal Code.
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.
The RCMP Federal Policing’s Financial Integrity Program contributes to the security of the Canadian economy and seeks to protect Canadians and their governments from financial crimes perpetrated by organized crime and others. The Financial Integrity Program is delivered in partnership with international and domestic government agencies, domestic stakeholders and the community at large.
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For further information please contact:
For Media Inquiries:
For RCMP Inquiries:
For Investor Inquiries:
Curt Boechler
Senior Communications Advisor
403-835-1263
Fraser Logan
RCMP
780.412.5261
ASC Public Inquiries
Toll Free: 1-877-355-4488
inquiries@asc.ca