The RCMP has arrested Neil Andrew McDonald in Alberta for money laundering and fraud in connection with finding $240,000 from 7 investors in 2015 in Alberta, in violation of securities law.
It is unusual for Canadian prosecutors outside of Quebec to attach a money laundering offence to a serious predicate offence, especially for securities fraud and this signals a change among Canadian prosecutors.
In this case, it appears that Mr. McDonald may have been acting as a “finder” – a term that describes an unlicensed person who “finds” investors to invest in deals. In some cases, a finder is able to act in finding investors provided they comply with securities legislation by, among other things, filing disclosure statements that they acted as a finder. The arrest of Mr. McDonald is the first one resulting from a joint investigation in Alberta of the Alberta Securities Commission, the RCMP and prosecution office.