August 17, 2021
by James Langton, Advisor's Edge
The promise of a quieter dental drill may have lured investors, but the pitch was ultimately a fraud, an Alberta Securities Commission (ASC) panel has ruled.
An ASC hearing panel issued a decision, which concluded that New Wave Innovations Ltd. (NWI), its founder, Allan Robert Magneson, and a numbered company he controlled defrauded investors ostensibly to finance the development of a quieter dental drill that Magneson invented, but he instead diverted much of investors’ money.
The panel found that, between 2011 and 2016, Magneson raised as much as $7 million from investors, “who understood their investment funds would be used to develop a new type of dental drill that uses air-bearing turbine technology and does not emit a high-pitched whine like a standard dental drill.”