Foundation Capital Harvest Group of C...
Buuker

Regina, Canada

#213 Apr 10, 2012
"Eligible Investors"??? To throw a curve ball at you. I too bought from CDS and recently found I that I did not meet the requirements to have purchased this security called Legacy. I was never, ever to told that about the rules that applied to buy this type of non-reporting investment. I am looking for others who did not meet the requirements to purchase and were unaware. Here are what were the rules up to 2009, under the National Instrument45-106.
To purchase $10,000 or more, you must be an "eligible investor" meaning:

1) have a minimum of $400,000 in liquid assets
2) have made $75,000 in the previous 2 years
3) have made $125,000 together with your spouse in the previous 2 years

In Nov of 2011, when all signals showed Legacy was a pile of shit, I asked Foundation for all my original documents (they are yours and they must give it to you), then went down to the Sask Security Commission. The documents that ask about "eligibilty " have an initial, but not mine and in different colour ink than the rest of my signatures. They were never sent to me or the topic raised, nevermind the seller had known my family and finacial situation well. I was shocked and will be claiming fraud in Small Claims against the seller.

If you want to know more, I can provide you with a mass of info regarding the rules and what I've done about it so far. Email me at [email protected]

Since: Apr 12

Regina, Canada

#214 Apr 10, 2012
And checked your dignity, honesty, human worth and any self respect that would allow a person to function as a "net worth to society". Then you must put on your "Greed Baby" had and rolling a vatt of horseshit. They all make me sick and ought to burn!
A Different Eric wrote:
I attended the Red Deer forum last week and have been passively watching this blog until I heard the presentation and it’s way worse than anyone thought. We need Ron and his guys out immediately.
On another note I checked my files, this Noel Winter guy who is on the new management team has been on as a consultant from day one (not so new!); his picture is right here on the brochure for the Airdrie project and I remember him being at almost all the presentations.
As for agents, Eric and Harold my who sold me and our friends all this garbage tried to confront the lawyers and this nice young lady who was trying to present in Red Deer without even letting them start the presentations. You 2 are a disgrace to us and the community.
I can’t believe how wrong I was about these guys but it’s possible as Dennis D indicated, when you go to work for Harvest you check your brain at the door.
Dannyboy

Calgary, Canada

#215 Apr 10, 2012
Buuker, that sound really really bad. There is no way that should have happened.
Hold Tight

Calgary, Canada

#216 Apr 10, 2012
Confused investor wrote:
I don't understand how appointing a CRO at this point in time is in the best interest of the investors. Here's where I get confused
1. E&Y is not done with their investigating. How does a CRO go about restructuring when there is not yet a clear picture of what he/she has to work with in the first place?
2. How is it not a huge conflict of interest that Keith Prosser (name suggested for CRO) is apparently involved with Frank Lonardelli?
3. Where does the UCC get off retaining lawyers and negotiating a salary for the CRO (and rumour has it, a % of the return)? That is the investors money they are spending. I don't recollect being asked if that's what I wanted my money being spent on. With the DIP process, my investment is going to be paying for E&Y, legal representation for Foundation/Harvest AND now legal representation for the UCC AND a salary for a CRO? seems like a lot of fingers dipping into the pot that holds my investment.
4. What's the rush? Why are they so impatient to get their own CRO installed? Why can't they wait for the monitor to finish the due process?
Foundation/Harvest are under the microscope now - one can only hope that means no more funny business but with the connection between Prosser and Lonardelli, the connection between the UCC and Foundation/Harvest (father-in-law of one UCC member former Foundation/Harvest employee, one UCC member a former Foundation/Harvest agent), I am really starting to wonder what the agenda is here. I am fast losing confidence that the agenda is protecting the investors.
Well Said, and gives us all something to think about.
sigh

Lacombe, Canada

#218 Apr 11, 2012
if you have time, google

Richard Skauge
Olympia Trust
Eyelogic Systems
Whitecapital
Shire Investments/Holdings

if you add "Ron Aitkens" to the searches, it is amazing (in a very sad we've likely lost our money kind of way) what pops up.

looks to me like a whole bunch of companies that may or may not exist but are mostly used to move money around between a group of cronies.
Paul

Canada

#219 Apr 11, 2012
The following is, from what I was told, Craig Burrows' resignation letter.

Dear Investors,

My name is Craig Burrows and I had the opportunity to meet many of you last fall as the new President and Ultimate Designated Person for Foundation Securities Corp.(“FSC”). I assumed these roles on September 22, 2011 and have since resigned on January 12, 2012. The purpose of this letter is to clarify some misinformation regarding my resignation from FSC that has been given out by the Harvest Group of Companies’ Investor Relations Department.

As I presented to over 800 Harvest investors from Lethbridge, Calgary, Red Deer and Edmonton, I thought it was important for investors to truly understand why myself and our Chief Compliance Officer (CCO), Richard Korble, gave our resignation notices to Ron Aitkens, Chair of the Harvest Group of Companies.

I would like to cover three main issues in this letter: why I joined FSC, why I left FSC, and my concerns for investors moving forward.

Why I joined FSC

Last fall, I was approached by the then CEO of the Harvest Group of Companies, Frank Lonardelli, to lead a management buy-out of the dealership from Harvest and create a new Exempt Market Dealer (EMD) that would be more responsive to our clients. I felt at the time that FSC, under a new ownership and control structure, had the potential to establish itself as one of Canada’s leading EMDs because of its existing agent network, its strong support staff and back-office infrastructure.

One of the reasons for the new ownership structure and control was to preserve independence from Harvest. My mandate was deliver superior returns to our investors, not to raise money for one specific issuer. In this spirit I hired Richard Korble as our new CCO but I also wanted him to be the CFO. Mr. Korble is a CFA and former securities regulator and I felt he brought a needed skill set to the management team. The importance of having a qualified CCO & CFO was not only to ensure offering materials were compliant but actually to fairly review the business model and prospects of these offerings. We wanted to create a process and structure that weeded out those investment opportunities that would not be suitable for our client base or those issuers that were not committed to transparency and openness to our clients.

Unfortunately, as you are all aware, Harvest has had many products that were failing to live up to investors’ expectations. Those products to name a few were FM1, FM2, Beyond the Bond (8 land deals), and FROG. Needless to say, their track record on these products were poor but I felt that Mr. Lonardelli had a vision to turn this company around and help the investors.
Paul

Canada

#220 Apr 11, 2012
the rest.....

I personally supported Mr. Lonardelli efforts to improve the transparency and integrity of Harvest. We both believed in transparency and being honest with our clients, no matter how uncomfortable it was for us to meet investors and give them the bad news. Harvest needed a plan to show investors that there was an alternative to doing nothing and praying for the best. Mr. Lonardelli introduced “Beyond the Bond” as a way to provide the security for the majority of investors who invested in 8 land holdings (Legacy, Airdrie, Foundation Place, Railside, Stoneyview, Rockyview, Spruce Ridge, and potentially Harbourview).

As CEO, Mr. Lonardelli instructed Colliers to perform an appraisal of the combined lands and the value came in at approximately $60 million (Harvest had originally raised $200 million). Two of the major reasons between what was raised and today’s values appears to be the “lift” that was clearly in the OM as well as commissions to agents. There is no question that the land was bought at the height of the market which would also reduce the value of the investments. We’ll have to wait for an update in appraisal value to see if there has been any move on valuation. What we do know is 4 out of the 8 properties have gone into CCAA ( http://documentcentre.eycan.com/Pages/Main.as... ).

Why I left FSC

I had a few investors try to contact me but initially I thought it was inappropriate to discuss why I left until I saw a few e-mails from Harvest to their investors that seemed to imply that I left simply because of the resignation of Frank Lonardelli in December.

While I felt Mr. Lonardelli resignation from Harvest was not a good sign, this is not the main reason for our resignation as there were more compelling reasons why Mr. Korble and I resigned from FSC.

As a matter of fact, it was during our due diligence review that matters came to light that we found particularly troubling as well as the affidavit by Ron Aitkens that was submitted to the Courts through a CCAA application on December 21, 2011:( http://documentcentre.eycan.com/eycm_library/... ).

In his affidavit there are admissions that shocked us. I wanted to let all those who heard me speak in Lethbridge, Calgary, Red Deer, and Edmonton regarding the future of Harvest know that after many meetings with Mr. Aitkens between November and December of 2011 regarding the “Beyond the Bond” proposal, that at no time did he mention that he removed millions of dollars out of Legacy to invest in other projects (especially over $4 million into Panama). Furthermore, I was also led to believe that the investors owned all 500 acres of that project which we have discovered is not correct.

I also find it even more troubling that the DIP financing would be provided by Harvest Capital Management Inc.(as detailed in the CCAA filing), the same company that removed over $9 million from the Legacy project that is controlled by Ron Aitkens. DIP financing allows him to have first security ahead of the original investors on this project.
Paul

Canada

#221 Apr 11, 2012
and finally ...:-)

In the end, our due diligence into FSC and the revelations of the CCAA filings were the main reasons that Mr. Korble and I resigned and notified the appropriate regulatory bodies of our departure.

How do investors move forward?

I’m sure this is a very difficult time for all investors as more facts come to light and the realization that the returns and past promises that have been made are not going to be materializing at this time.

Compounding the difficulty, in my opinion, is that Harvest was not being as transparent as they should have been over the last few years and it was difficult for many of you to be informed that as bonds were coming due that the original terms could not be honoured.

The good news from the CCAA applications is that an Unsecured Creditors Committee (“UCC”) has been sanctioned by the Courts to represent the creditors and try to protect the interests of all investors. The existence of this Committee provides a voice to the court that can push for greater scrutiny of what has happened, how it happened, how it will be addressed, and is anyone personally responsible for what has happened. If I was an investor, I’d be happy to know that I have fellow investors looking out for our interests to find a way to protect my investment.

If this CCAA proceeds in a typical fashion, you will likely be given a number of re-organization proposals to pick from, including one from the old management of Harvest. After the poor track record of these projects and the large lifts of money that has been taken from the projects, you must ask yourself if you have confidence in the current managers of your investment or do you need a new team to lead these projects? Another piece of information that has recently come to light is from Ernst & Young who are the Court appointed Monitors for these CCAAs. In their report, http://documentcentre.eycan.com/eycm_library/... 's%20Reports/Second%20Report%2 0of%20the%20Monitor%20-%20FINA L%20-%20filed.pdf , they feel that there is $2.4 million missing from the Legacy bank account.

I wish you all the best. I felt that the right thing to do was explain why we left to correct any misinformation that you might have heard. Many of you came to hear me speak on behalf of Harvest and FSC. You deserved to know the facts as I made it very clear in those presentations that I would not continue on as the President of FSC unless I believed the investors were the companies’#1 priority. Hopefully you’ll have a range of choices to weigh during these proceedings.

Best Regards,

Craig Burrows
Paul

Canada

#222 Apr 11, 2012
Let's try this again part 1 of 3:

Dear Investors,

My name is Craig Burrows and I had the opportunity to meet many of you last fall as the new President and Ultimate Designated Person for Foundation Securities Corp.(“FSC”). I assumed these roles on September 22, 2011 and have since resigned on January 12, 2012. The purpose of this letter is to clarify some misinformation regarding my resignation from FSC that has been given out by the Harvest Group of Companies’ Investor Relations Department.

As I presented to over 800 Harvest investors from Lethbridge, Calgary, Red Deer and Edmonton, I thought it was important for investors to truly understand why myself and our Chief Compliance Officer (CCO), Richard Korble, gave our resignation notices to Ron Aitkens, Chair of the Harvest Group of Companies.

I would like to cover three main issues in this letter: why I joined FSC, why I left FSC, and my concerns for investors moving forward.

Why I joined FSC

Last fall, I was approached by the then CEO of the Harvest Group of Companies, Frank Lonardelli, to lead a management buy-out of the dealership from Harvest and create a new Exempt Market Dealer (EMD) that would be more responsive to our clients. I felt at the time that FSC, under a new ownership and control structure, had the potential to establish itself as one of Canada’s leading EMDs because of its existing agent network, its strong support staff and back-office infrastructure.

One of the reasons for the new ownership structure and control was to preserve independence from Harvest. My mandate was deliver superior returns to our investors, not to raise money for one specific issuer. In this spirit I hired Richard Korble as our new CCO but I also wanted him to be the CFO. Mr. Korble is a CFA and former securities regulator and I felt he brought a needed skill set to the management team. The importance of having a qualified CCO & CFO was not only to ensure offering materials were compliant but actually to fairly review the business model and prospects of these offerings. We wanted to create a process and structure that weeded out those investment opportunities that would not be suitable for our client base or those issuers that were not committed to transparency and openness to our clients.

Unfortunately, as you are all aware, Harvest has had many products that were failing to live up to investors’ expectations. Those products to name a few were FM1, FM2, Beyond the Bond (8 land deals), and FROG. Needless to say, their track record on these products were poor but I felt that Mr. Lonardelli had a vision to turn this company around and help the investors.

I personally supported Mr. Lonardelli efforts to improve the transparency and integrity of Harvest. We both believed in transparency and being honest with our clients, no matter how uncomfortable it was for us to meet investors and give them the bad news. Harvest needed a plan to show investors that there was an alternative to doing nothing and praying for the best. Mr. Lonardelli introduced “Beyond the Bond” as a way to provide the security for the majority of investors who invested in 8 land holdings (Legacy, Airdrie, Foundation Place, Railside, Stoneyview, Rockyview, Spruce Ridge, and potentially Harbourview).

As CEO, Mr. Lonardelli instructed Colliers to perform an appraisal of the combined lands and the value came in at approximately $60 million (Harvest had originally raised $200 million). Two of the major reasons between what was raised and today’s values appears to be the “lift” that was clearly in the OM as well as commissions to agents. There is no question that the land was bought at the height of the market which would also reduce the value of the investments. We’ll have to wait for an update in appraisal value to see if there has been any move on valuation. What we do know is 4 out of the 8 properties have gone into CCAA ( http://documentcentre.eycan.com/Pages/Main.as... ).
Calgary Investor

Calgary, Canada

#223 Apr 11, 2012
Thanks for the post of Craig Burrow letter, Paul. Good to hear. Confirms all of my concerns and my complete loss of faith in Ron Aitkens to effectively manage these investments. Anyone who a) can't follow securities laws (he' been sanctioned in AB, BC and SK), b) makes really bad investment choices in foreign countries with investors money that was supposedly to be used to purchase land for which the investors invested and c) cannot regularly produce financial statements when managing over $100 million in investors dollars in my book looks to be a really poor businessman and shouldn't be given any more opportunity with investor's money.

I also was astounded that the DIP financing was coming from Harvest. Way to many related parties doing business together...conflicts of interest all over the place, but this clearly is the Ron Aitken's way.
Dannyboy

Calgary, Canada

#224 Apr 11, 2012
One interesting thing I noticed as I looked through the list of bondholders.
It didn't look to me like Roy Beyer sold any investments to his family members or close political friends. He bought a few small investments himself, but not what you might expect a man of his means to buy, if it was a 'sure thing'.
Lethbridge rep Dick Deweert, however, who was not as close to the action, appears to have sold plenty to Lethbridge/Coaldale family members and a few close associates. I feel sorry for them all.
I don't know enough about Ron's family to comment, but I find the lack of other Beyer's interesting.
FROG SCUM

Calgary, Canada

#225 Apr 11, 2012
I reiterate, is it time for the RCMP, the CROWN and a full investigation of Aikens etal?
Sandy

Edmonton, Canada

#226 Apr 11, 2012
I was looking for connections like that as well. My salesman signed up his inlaws for a pretty penny...can't imaging things are not a little tense there!!
Dannyboy wrote:
One interesting thing I noticed as I looked through the list of bondholders.
It didn't look to me like Roy Beyer sold any investments to his family members or close political friends. He bought a few small investments himself, but not what you might expect a man of his means to buy, if it was a 'sure thing'.
Lethbridge rep Dick Deweert, however, who was not as close to the action, appears to have sold plenty to Lethbridge/Coaldale family members and a few close associates. I feel sorry for them all.
I don't know enough about Ron's family to comment, but I find the lack of other Beyer's interesting.
depressed

Sherwood Park, Canada

#228 Apr 11, 2012
Paul could you please direct me to the source where I can copy that letter?
Tyler

Saskatoon, Canada

#229 Apr 11, 2012
Did anyone go the Edmonton meeting last night who would be willing to comment on what they heard from Foundation?
Angry Investor

Saint Albert, Canada

#230 Apr 11, 2012
I, as well, would like to hear comments about the Edmonton meeting.

Thanks
Don

Edmonton, Canada

#231 Apr 11, 2012
Reading all the comments about Stoney Creek Crossing 11% bond, I think the only solution for investors is to band together and commence a class action suit agaist foundation capital
Buuker

Regina, Canada

#232 Apr 11, 2012
Legacy holders be aware that there were 2 OMs, at least. There is the one I was sold under, the original, which came with my bond certificate and another one put out in Sept, 2006. When I asked Foundation for my signed documents last Nov, 2011 they sent the updated OM as part of my package, as if that was the one I had purchased under. I have been too busy digging other places to compare the two, so I don't know if or what they are trying to slide by me but BE AWARE.
I know that neither one says, under the 4 intentioned Business Strategies.that they would sifen our money away and not pay out by Dec 31, 2011. Breach of Contract.

They both STINK.
Dannyboy

Calgary, Canada

#233 Apr 12, 2012
Please note I filed the following complaint with the Financial Planning Standards Council:

I note on your FPSC fitness standards that revocation of a financial services license or registration is considered a Bar to Certification.

Please note that Foundation Capital Corporation, Ron Aitken's company, had it's certification suspended by the ASC: http://www.albertasecurities.com/news/Lists/A...

You should also review and monitor the Court Appointed Monitor's reports in regards to the investments marketed by Mr. Aitkens:
http://documentcentre.eycan.com/eycm_library/...
http://documentcentre.eycan.com/Pages/Main.as...
It would appear several million dollars are unaccounted for, and millions were diverted to related companies. As a result, these companies could not meet their obligations and are under CCAA protection.
Claudine7633

Calgary, Canada

#234 Apr 12, 2012
Sounds like Dannyboy has some personal issues with Roy Beyer, no need to expose his personal life, this is about the investments

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