The Alberta Securities Commission has ordered a Calgary businessman to pay $650,000 to the commission, accusing him of bilking investors through Strategic Metals Corp.

Milowe Brost, one of the company's directors, has also been handed a lifetime ban from the markets, the commission announced Wednesday. In its decision, the panel concluded Brost was "at the centre of this fraudulent scheme."

Three other directors with the Calgary-based company — Edna Forrest, Bradley Regier and Carol Weeks — have also been handed fines and bans.

The four are appealing the commission's decision.

The commission alleges that the four illegally sold Strategic Metals Corp. securities, raising a total of $36.5 million, mostly from Albertans.

Investors were promised a low-risk, high-return investment, but the real level of risk was "significantly different," said John Petch, the commission's director of enforcement.

The money went into a shell company whose main, but undisclosed function, was to finance offshore mining ventures, he said.

"The usual commercial arrangements you would expect to be in place to give some legal ability to recover the money were completely lacking," he said.

"All I think one can learn from this is that one has to view with scepticism any investment opportunity that's offered. And this one unfortunately came very well disguised in terms of appearing to conform with legal requirements."

The matter has also been referred to the RCMP for investigation.