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In the offerings, Pocklington, Eldred and The Eye Machine (now known as Nova Oculus Partners) failed to disclose Pocklington’s “checkered history” and involvement, and misrepresented how investor funds would be spent, the complaint says.

Pocklington, 76, allegedly participated in misappropriating more than US$600,000 of investor funds for personal use, including funding his gold mining companies and paying personal legal and credit-card bills, the complaint says.

It also claims The Eye Machine paid millions of dollars in undisclosed and excessive sales commissions to three people, one a repeat securities law violator, who acted as unregistered brokers for the company.

Two of them allegedly used a Florida “boiler room” — which usually describes sales centres using aggressive or unethical tactics — to cold call investors, the commission said.

“Investors should research the background of anyone offering an investment, but they can only do this if the offering accurately and adequately discloses the individuals involved,” Michele W. Layne, director of the Securities and Exchange Commission’s Los Angeles regional office, said in a news release.

The commission’s complaint charges The Eye Machine, Pocklington and Eldred with violating the anti-fraud and securities registration provisions of the American federal securities laws.

Company owner AMC Holdings, indirectly owned by Pocklington’s wife, Eva, and The Eye Machine’s accountant are also accused of securities fraud violations, the complaint says.

It calls for Peter Pocklington and other defendants to pay back all “ill-gotten gains” with interest and face civil penalties.

None of the accusations has been proven in court.

Pocklington, who couldn’t be reached for comment and hasn’t filed a defence, sold the Oilers in 1998 and later moved to Palm Desert, Calif.

Last October, an Edmonton judge blocked his attempt to cut a deal on $21.5 million he owes the Alberta government and other creditors in a dispute that began in the 1980s.

gkent@postmedia.com

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