Canadian Stocks/Consolidted Developments Limited
Fred Hirschmann wrote at 2015-05-14 18:15:33
My dad also had a certificate for 13 shares of Consolidated Developments Limited which was issued on May 20, 1971 following a reverse split of 23 shares of Gaspe Oil Ventures Ltd. for 1 new share of Consolidated Developments. My dad had been investing in Gaspe Oil since 1954 and his father bought the stock in 1946.
There were numerous reverse splits and other company names involved including New Associated Developments Ltd. His file also held company promo materials including a retouched photo of a gushing Canadian oil well. This September 20, 1954 United Press newspaper clip found in his file should have provided warning for the future . . .
"5 Million Loss in Canada Oil Swindle Charged
NEW YORK, Sept. 20, - (UP) - A Canadian oil stock scheme has swindled American Investors of $ 5,000,000 it was charged today. Four Americans, five Canadians and four Canadian Corporations were restrained temporarily from further securities dealings in this state.
Nathaniel Goldstein, state attorney general, said the officers of Gaspe Oil Ventures Ltd. and Quebec Oil Development Ltd. had lured investors with claims of rich oil prospects in the Gaspe peninsula region of Quebec. He said commercial oil interests quit prospecting in the Gaspe area years ago.
The case was termed the largest stock fraud case in the state in 15 years. Goldstein said the state findings had been sent to federal authorities for possible prosecution.
Paul Payette, Montreal, was said to be the principal officer in the two concerns.
Goldstein said some 10,000 persons were victims. He said the stock, sold between 1946 and 1951 by the promoters, was offered at 60 cents a share for Gaspe and $1 a share for Quebec. He added that it sold on the Canadian Stock Exchange at Montreal and in over-the-counter dealing in New York for $ 4.25 for Gaspe and $ 3.25 for Quebec."