Sentencing of former TIE Mortgage Corporation president scheduled for June 2
Last week, the second defendant in a $27-million mortgage fraud case has pleaded guilty to a total of three counts of violating existing securities laws in Alberta.
On Thursday (March 16), Kenneth Charles Fowler pleaded guilty to one count of fraud in the following: selling TIE Mortgage Corporation securities, unregistered trading in these securities, and illegally distributing said securities.
Fowler, who is scheduled to be sentenced on June 2, was captured in Mexico in January 2016 and was subsequently deported to Canada. He was formerly the president of TIE Mortgage, which acquired $27 million from around 200 investors between 2002 and 2013, the Calgary Herald reported.
According to Grant Thornton Ltd.—the court-appointed receiver of TIE Mortgage and Fowler—financial statements revealed that none of the mortgages or loans were ever made to third parties. The only mortgages in TIE’s records up to 2015 were inter-company or shareholder loans that remained unpaid.
Previously, TIE Mortgage salesman Douglas Schneider was apprehended in California in 2015, eventually pleading guilty in July 2015 to trading in securities without registration, distributing securities without a prospectus, and making misleading statements.
Related stories:
Vancouver real estate developer committed fraud, securities panel finds
Mortgage fraud rising in lockstep with home prices - report
