An investor who lost $100,000 buying securities in The Investment Exchange Mortgage Corp. (TIE) says the sentence given to one of those involved is a “miscarriage of justice”. Douglas Wayne Schneider of Medicine Hat pleaded guilty to trading in securities without registration, illegal distribution of securities and making misleading or untrue statements to investors, but charges of fraud were dropped by the Alberta Securities Commission.
Investor Jon Edmunds told the Calgary Herald that after investors had paid for a private investigator to track down Schneider in the US resulting in his extradition back to Canada; they had hoped for a longer sentence. Schneider was given a one-year sentence after the judge accepted that he had lost $600,000 of his own money in the scheme and was not “the controlling mind” of the scheme. The total lost by investors was $12.5 million and the judge ruled that Schneider was responsible for $1.6 million.
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