"All of the respondents were involved in perpetrating a systemic massive fraud on Alberta and other investors, involving a complicated web of domestic and offshore corporate and other entities, bank accounts and offerings," the commission said Friday.
"Investment fraud is reprehensible and completely unacceptable capital-market misconduct; instances of fraud in the capital market severely threaten the public's confidence and sense of fairness in the whole of our capital market."
The case centres around a now-defunct company called Arbour Energy, which the ASC says illegally raised $45.5 million from investors.
Arbour was led by Dennis Morice, who, according to the ASC decision, considered himself a "bit player" and "cog" in a scheme led by Milowe Brost and Gary Sorenson - two men charged in a separate high-profile alleged Ponzi scheme in 2009.
Morice faces the smallest penalty of the three men - a $150,000 fine, an order to pay $50,000 to cover the cost of the investigation and hearing and a variety of bans. Arbour itself faces no financial penalties, but it's been barred from trading in and purchasing securities, among other things.
In its decision, the ASC said Brost's misconduct was "the most egregious" of the three men. Brost led the Institute For Financial Learning, which he claimed was an "information club"...