81 charges laid in real estate Ponzi scheme in Alberta, B.C.: police
Two people are facing more than 80 charges in connection with an alleged $7.8-million Ponzi scheme with victims in Edmonton, B.C., the U.S. and Australia.
The Edmonton Police Service says investigators became aware of the scheme, reportedly being run by a man and a woman under the company name Group Venture Inc., in early 2020.
The scheme, which ran from October 2008 to December 2020, was primarily targeting people in Edmonton and Kelowna, but police say some victims were in Nevada and Australia.
The pair was allegedly offering securities in the form of promissory notes to guarantee investors a set return on their investment, which was often presented as a real estate "flip."
Curtis Gordon Quigley, 56, and Kathleen Treadgold, 56, turned themselves in to EPS on Wednesday.
Police say they have been jointly charged with 80 counts of fraud over $5,000 and one count of laundering proceeds of crime.
Investigators believe there may be more victims who have yet to come forward.
"The theme was, you were going to buy houses and you were investing in the purchase of the home. Then we were going to flip the home and you would get interest off the sale of the home from investing your money," Det. Linda Herczeg of the EPS Financial Crimes Section told reporters on Wednesday. "So they'd get their investment back and they’d get their interest realization back.
"Over time, what was happening is the money wasn't coming back."
Herczeg says in Ponzi schemes it's usually only the first investors who get their money back to help convince others to invest in the future.
Police are reminding the public that legitimate investment opportunities should always have some sort of verification, such as a real estate listing and land title for a real estate investment.
Land titles are publicly available online.
Prospective investors should also research the company to confirm it's a legal entity by doing the following:
- Checking with the Better Business Bureau
- Doing a corporate search to see if the business is a legally registered entity
- Doing a Google search to see if the company comes up, or if there is any conflicting information about the company.
- When buying securities, always check with the Alberta Securities Commission (or your respective provincial regulatory body) to determine whether the seller is registered to sell securities.
Anyone who believes they may be a victim of this scheme is asked to call police at 780-423-4567 or Crime Stoppers at 1-800-222-8477.
CTVNews.ca Top Stories
'Still working full time on it:' One year later police continue to search for gunman in Caledon double murder linked to ex-Olympian
One year after a couple was shot and killed in their Caledon home in what investigators have described as a case of mistaken identity, Ontario Provincial Police say they are still trying to figure out who pulled the trigger.
A man called 911 for help during a home invasion. Las Vegas police fatally shot him
A Las Vegas man called for police help during a home invasion before an officer fatally shot him, according to authorities and 911 calls.
Scurvy resurgence highlights issues of food insecurity in Canada's rural and remote areas
A disease often thought to only affect 18th century sailors is reemerging in Canada.
Cat caught in hunting snare rescued by BC SPCA
Donations are ramping up for a BC SPCA cat with a mangled paw after being caught in a hunting snare, one of a rising number of pets to fall prey to the hunting device.
'Very disturbing': Deepfake videos appear to target Canadian immigrants for thousands of dollars
Artificially generated videos of a Toronto-based lawyer asking for money appear to be just one way some try to exploit newcomers to Canada during a time of confusion around new immigration rules.
Lotto Max jackpot hits $80M for second time ever
The Lotto Max jackpot has climbed to $80 million for just the second time in Canadian lottery history.
Nova Scotia Tories appear safe with close battle for second between Liberals and NDP
With two days left before Nova Scotians elect their next government, polls suggest Progressive Conservative Leader Tim Houston's decision to call an early vote will pay off and the real battle will be between the Liberals and NDP for second place.
Montreal police chief expects additional arrests following anti-NATO protest
Montreal's police chief says he expects more arrests stemming from a Friday anti-NATO protest that turned violent, with smashed windows and burned cars in downtown Montreal.
'Wicked' and 'Gladiator' make gravity-defying theatre debuts
With a combined US$270 million in worldwide ticket sales, 'Wicked' and 'Gladiator II' breathed fresh life into a box office that has struggled lately.