03/26/2012 05:30 EDT

Dale St. Jean, Gregory Tindall Accused Of Ponzi Scheme Involving TransCap, Strata-Trade

Flickr: FaceMePLS

CALGARY -- Two men and their Calgary-based companies have been accused of perpetrating a Ponzi scheme that tricked investors out of more than $50-million.

The Alberta Securities Commission alleges Dale Joseph Edgar St. Jean and Gregory Dennis Tindall broke the law by misleading investors.

It says between March 2005 and November 2009, St. Jean's and Tindall's companies -- TransCap and Strata-Trade -- raised $51.6 million by promising low-risk investments with returns of 18 to 22 per cent.

The alleged Ponzi scheme -- a type of fraud in which money from new investors is used to pay ones that joined earlier _ ultimately collapsed in November 2009.

The securities watchdog also says Tindall made false and misleading statements to ASC investigators.

The allegations haven't been proved. A hearing date will be set on May 9.

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