Description :
Date Posted: April 2014
Prepared by: Outside Informant
Please note: This draft was not prepared by the principal(s) of this web-site. Its sole purpose is for the review by prospective readers and is for discussion purposes only.

Prepared for: Examiners, Ontario Securities Commission, Revenue Canada Agency, Special Investigation Units and Superintendcia General de Valores (Costa Rica) 
Full Text :
Date posted: April, 2014 

Prepared by: Outside Informant 
Warning: Ross Clark Alexander doing business as an Investment Guru with Mark Anthony (Tony) McCreath of Costa Rica 

Last known address: 3668 Homewood Lane, London, Ontario N6P 1K4

Last known Telephone number: Home: 519-652-0688 Cell: 519-808-0375 email: This email address is being protected from spambots. You need JavaScript enabled to view it. 

Other: Ross Clark Alexander (Investment Guru) and Mark Anthony (Tony) McCreath are both not registered in any capacity to engage in the business of (i) trading in any type of securities (ii) advising anyone with respect to investing in any security trading programs, (iii) are not authorized for selling, trading, or promoting any type of securities or an investment worldwide in their respective jurisdictions with any Security Commission regulators. Furthermore, their chief source of income has been that of ill-gotten means by converting investor funds for their own personal usage. 

Additional Information:

Background Mark Anthony McCreath [Tony]

[1] In late 2001 Tony MCreath, with barely a high school education and with no formal training or licencing to sell, trade, or participate in the sale of security investments in debenture trading programs, commences learning about these debenture trading products with International Investments Group Inc.,(I.I.G.), out of Hamilton, Ontario from operation managers Stephen Hawkins and Lars Soderstrom. 
[1b] it was during this time Tony McCreath is introduced to Ross Clark Alexander by William Charles Rath. It is alleged that Rath was the controlling mind behind I.I.G. and TCI, another debenture trading program scheme, but I.I.G. and TCI were one and the same organisation
operating out of the same building in Hamilton Ontario. Reference: Examination of Discovery Transcripts: Soderstrom. 

[2] I.I.G. was set up as a “Shell” entity for the sole purpose of having the appearances of a legitimate investment house and to defraud investors. Reference: Ontario Superior Court of Justice File No.: 58575 

[3] I.I.G. Investors allege, by way of a separate action in the above mentioned court file, they were led to believe their investment with these debenture programs was fully insured by American Home Assurance Company. American Home Assurance Company denies the existence of any investor insurance coverage. Reference: Ontario Divisional Court File No.: 1888-11

[4] Investors obtain judgement alleging fraud against I.I.G. and one of their principals Mr. Stephen Hawkins. Reference: Court File No., 50759. 

The Alexander and McCreath Scheme:

[5] Between 2002 to this current date 2014, Tony McCreath is sent off to live in Spain near his in-laws and then to Costa Rica. He is then touted as an investor by Ross Alexander in various High-Yield-Investment programs with an investor bank trust account: Reference: Ross Clark Alexander’s own hand written statements made to investors. 

[6] A vast series of money orders and Bank Drafts made payable to Ross Alexander were placed in his own bank account for alleged investments with Tony McCreath. Reference: Various copies of investor bank drafts paid to the order of Ross Alexander and placed in his own bank account totaling over one million dollars from the years 2006 to 2014 based on just a few investors. 

[7] A series of acknowledgments for receipt of investor funds from investor bank drafts made payable to Alexander and placed in his own bank account. that are to be transferred to Mark Anthony McCreath in Spain or Costa Rica. Acknowledgements detail how investor funds are to be returned to investors in 120 days along with an amount equaling to 50%. Reference: Copies of letters given to investors signed by Ross C. Alexander by his own hand writing. 

[8] An acknowledgment in receipt of investor funds made payable to Alexander that were placed in his own bank account. These funds are to be transferred to Tony McCreath who will place them in “Trust” on behalf of investors that is to be active in a “Currency Trading Program.” Reference: Copies of letters given to investors signed by Ross C. Alexander. 

[9] Statements made to investors from Alexander that the performance of their investment in a “Currency Trading Program will be totally transparent and will mirror the Performance of the Master Account.” Reference: Copies of letters given to investors signed by Ross C. Alexander. This never occurred by statements from investors. 

[10] Statement made by Alexander to investors in the “Currency Trading Program” that “the only person (s) who can withdraw, transfer, or close the account will be you.” Reference: Copies of letters given to investors signed by Ross C. Alexander. This was never accessible to investors. 

Summary of Investor Assertions and Findings Ross Clark Alexander:

(a) Investor Assertions: Ross Clark Alexander has been touted as a “wealthy investment Guru” by fellow church goers and greeters, Keith and Paula Campbell of Ilderton, Ontario.

(b) Findings: Ross Clark Alexander was a previous Bankrupt at the commencement of the above mentioned scheme. From his discharge date of 2002 through to 2014, Alexander has been living off the avails of lender and investor funds to support a lavish lifestyle. Reference: Ontario Records, trades people, President of Keampa Property Group Ltd. 

(c) Investor Assertion: Ross Clark Alexander pitches a “no risk, straight up return of principal plus 50% return within 120 days.” 

(d) Findings: Treasury and Federal Reserve System advised that these investments do not exist. Alexander’s representations were false and misleading and made in reckless disregard for the truth.

(e) Investor Assertion: Ross Clark Alexander pitches an “opportunity for a hefty return in a currency exchange program,” and that “we need to get in right away, don’t miss out, you will have complete control of the account.” 

(f) Findings: The main participants in this market are the larger international banks. Financial centres around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock. Behind the scenes banks turn to a smaller number of financial firms known as “dealers,” who are licenced and under strict regulatory rules. Alexander is not held in any capacity to advise, sell or seek investors for these investments, nor has he access to any of the necessary software where an investor can have transparency and control on their account. Alexander’s representations were false, misleading, and a violation under the Securities Act. 

(g) Investor Assertion: Ross Clark Alexander pitches to have investor make investment funds out to himself and promises to transfer their funds to Tony McCreath “We paid to Ross Alexander money drafts.” 

(h) Findings: Alexander knows or ought to know that funds received by investors are to be held in a trust account and not deposited into his personal bank account. Also proof of any transfer of investor funds is to be made available and traceable for audit and verification purposes. Alexander is not held in any capacity to receive public investment funds on behalf of investors. Alexander’s representations are a tantamount of fraudulent transactions that involves over 400,000 of just a few of investor funds at this point and holding himself out as a so-called-transfer agent on behalf of investors is a violation under the Securities Act. 

(i) Investor Assertion: “We asked Ross to liquidate one of our investments for us since the first one had ongoing delays. He told us, “Tony was supposed to be responsible to return the money but internet, weather, sickness problems prevented this.”

(j) Findings: This statement made by Alexander is a complete weak and ill thought-out fabrication. In any legitimate investment and without delay once the maturity date has been reached and regardless of the internet, weather, and sickness problems don’t prevent the return of investor funds. 

(k) Investor Assertion: “Ross handed us material about a company called Griffin Investment Group Limited and advised that our money was in something to do with Carbon Credits with a man named Tony McCreath in Costa Rica.” 

(l) Findings: What Ross Alexander provided to investors is nothing more than written material without producing any bona-fide certificates, shares or documents showing that the investors hold any value what-so-ever with their respective names on them that prove an investment exists. Furthermore no documentation is provided that a Tony McCreath has a vested interest in this investment group on behalf of investor funds. This is nothing more than an attempt made by Alexander to mirage, mimic and deceive investors into believing their funds have been placed in a legitimate investment.

(m) Investor Assertion: “Ross was desperate for money in 2012. We had not received any of our investment funds after three years yet he came to us crying and asking for 5,000 using psychological triggers to make us feel sorry for him.”

(n) Findings: Since March 2002 to 2014, Alexander has been residing on an 18 acre estate purchased for 640,000 in cash. Over the years, with no known income to support the high cost to maintain the house, buildings and other costs documents show that:

[1] From July 2005 to November 2012 1,450,000 in first mortgages were flipped, (newer increased mortgage paying off the previous mortgage) on the property. Balance as of March 2014 is 750,000 now in default since May 2013.

[2] From July 2005 to November 2012 489,240 in mortgage interest payments were made on the first mortgages.

[3] From March 2002 to November 2013 approximately 67,000 in property taxes were paid on the property. 

[4] An arrangement in or about February 2002 between Kemapa Property Group Ltd. c/o Mr. Thomas Sharp of Vancouver B.C. and Alexander was that:

(a) Alexander as tenant in common on the estate is to pay “all costs” including mortgage payments, repairs and maintenance, insurance, property taxes and general costs on the estate.

(b) Alexander is to arrange, or was permitted to seek and place liens, mortgages and other encumbrances on the estate and is to pay off such financial instruments. 

(c) Alexander has been in default or behind in payments on the estate on a repeat basis but, has caught up on behind payments by flipping mortgage lenders paying off one with another, until recently. 

(d) Alexander has no-known regular employment, business, or any other type of income that supports the now average monthly cost of 6,250 in mortgage payments.

(e) Alexander from 2002 to 2014 has had to make over 600,000 in interest and property tax payments alone with no known supporting income. 

[5] Aside from violating investors' trust and funds, it appears that Alexander may have violated, or evaded paying income taxes from the proceeds of funds obtained by ill-gotten means by not reporting this on his income tax returns which is a requirement under the Income Tax Act. 

Summary of Investor Assertions and Findings Mark Anthony (Tony) McCreath: 

(a) Investor Assertion: Letter from investor to Tony asking “please come up with some proof,” investor seeks evidence an investment exists after waiting 84 months for a return on a 79,500 investment.

(b) Findings: McCreath responds to investor “A little information is very dangerous and also proves ignorance of some people to reality of life, I cannot show you anything as it would break agreements I signed.” This statement made by McCreath is abusive, insensible, and a total fabrication of the existence of an investment.

(c) Investor Assertion: to Tony, “I have no idea who you are, what your occupation is, just what Ross has told me.” 

(d) Findings: McCreath responds to investor,” You don’t have to be a registered financial advisor if working privately with people who are sophisticated investors.” These claims by McCreath are misleading, false and a total fabrication of the truth. He has never been in any capacity an investor, nor has he had any formal schooling, training or known accomplishment in investments and does not provide the names of where investor funds were supposedly held and invested.

(e) Investor Assertion: Investor receives unprofessional and illogical response from McCreath about the whereabouts of his investment funds. 

(f) Findings: McCreath in an email writes, “I mostly ignore your emails, you wrote six times and nothing short of stupid, quit while your ahead before you lose everything with your stupidity.” 

(g) Investor Assertion: Tony McCreath states he has a contract and is pooling investor funds for an investment with Valencia Energy Power. This statement made by McCreath is false, misleading and an illusion, purported by McCreath to investors that an investment exist.

(h) Findings: Former CEO Brian Jones of Valencia Energy Power states on July, 2012” Tony has been working with our Central American Director on some project financing through bank debt only and should not have been soliciting any investor funds as Tony is not authorized by us to do so.” 

(i) Investor Assertion: Tony McCreath touts himself as an international financier with Energy Power Corp.

(j) Findings: Former CEO Brian Jones of Valencia Energy Power states on January 22, 2013” Tony has produced nothing and never will. I thought he was full of *bleep* from the beginning but my board wanted to pursue it, so they did. We have stopped communicating with him some time ago.” 

(k) Investor Assertion: Tony MCreath on May 26, 2012 assures an investor “there are three transactions finishing on schedule so far. 99.5% done money coming in likely Thursday/Friday.

(l) Findings: Further correspondence with investor by McCreath after this date reveals no such promised funds reached the investor. McCreath begins another series of illogical reasons as to why. It becomes evident to investor that both Alexander and McCreath have partnered up in running an investment scam to public investors. 

Summary of alleged acts and potential violations: 

During the period(s) described, Alexander and McCreath, individually and in concert, directly and indirectly, through the instrumentalities of a preplanned scheme, to wit and knowingly engage and participated together in a continuous course of conduct to actively deceive Canadian investors and to conceal adverse material information from investors as described herein that included the following: Alexander and McCreath knowingly and recklessly employed devices, schemes, and artifices to defraud and engaged in acts, practices, and a course of conduct which operated as fraud and deceit upon investors and made untrue statements of material facts and omitted to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading. Using the above means, Alexander and McCreath offered and sold to investors an investment that did not exist. Alexander and McCreath used these same means to lull investors into believing and still do up to this time that this investment(s) was legitimate and the profits promised from this investment contract would be forthcoming, even after several years and still made further attempts with the same investors for more money. 

By engaging in the conduct described above, Alexander and McCreath may have acted in a manner contrary to the public interest that were certain transfer restrictions of investor funds pursuant to the Regulations of The Securities Act, R.S.O. 1990, c.S.5, 
And furthermore 
By engaging in the conduct described above, Alexander and McCreath may have acted in a manner contrary to the Income Tax Act and the Excise tax Act by converting investor funds for their own personal usage as their chief source of income and could be subject to a tax evasion conviction under section 750 of the Criminal Code of Canada. 
And furthermore 
By engaging in the conduct described above, Alexander and McCreath may have acted in a manner contrary to section 380 of the Criminal Code of Canada by converting investor funds to their own personal usage. 

Documents enclosed: 
[1] Copy of series of money orders and Bank Drafts made payable to Ross Alexander.
[2] Copy of letters to investors signed by Alexander for a 120 day return on an “Investment,” and “Currency Trading Programs.”
[3] Copy of letters to investors signed by Alexander that funds will be held in trust.
[4] Copy of letters to investors signed by Alexander that he transferred funds to Tony McCreath. 
[5] Copy of letters to investors signed by Alexander that investors will have transparency