ASC issues public interest order against Charles DeBono in response to criminal conviction

Associated Press

14-02-2025

CALGARY, AB, Feb. 14, 2025 /CNW/ - The Alberta Securities Commission (ASC) has permanently banned Ontario resident Charles DeBono from participating in Alberta's capital market after a criminal court found that he was operating a Ponzi scheme.
In June 2022, DeBono was sentenced by the Ontario Superior Court of Justice to seven years in jail and ordered to pay restitution of more than $26 million after pleading guilty to one count of fraud over $5,000 and one count of laundering the proceeds of crime under the Criminal Code.
Between January 2013 and August 2017, DeBono sought investments in Debit Direct, a company he owned that purportedly provided point of sale debit machines to merchants. Investors were told that they were purchasing debit terminals for small businesses across Canada and that they would receive a portion from each transaction. DeBono raised up to $48 million from more than 500 investors, including over 100 Albertans. The Court found that Debit Direct was not a legitimate business and that DeBono was operating a Ponzi scheme; any returns investors received were paid from other investors' funds.
When considering the matter under the Securities Act (Alberta), an ASC panel found that it was in the public interest to issue an order. In its reasons, the panel stated that 'DeBono's misconduct – fraud – was extremely serious, involving hundreds of investors, a large amount of money, deceit, misrepresentation, and misappropriation of millions of dollars for his personal benefit.' The panel noted a 'significant need for strong sanctions to deter DeBono and others from similar misconduct in the future, and to protect Alberta investors and the Alberta capital market from further harm.'
On February 12, 2025, the panel ordered that DeBono:
must permanently cease trading in or purchasing any 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.
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.