Calgary fraudster to learn sentence in Ponzi scheme

A Calgary man who helped run a Ponzi scheme that stole more than $27 million from multiple investors between 2014 and 2015 is expected to learn his sentence later this week.

Arnold Breitkreutz was charged in May 2018 with fraud over $5,000 and theft over $5,000 in connection with the activities of a company called Base Finance Ltd.

Calgary police were notified about the illegal activities following a tip from the Alberta Securities Commission (ASC).

A criminal investigation determined that Breitkreutz, along with his partner Susan Way, raised more than $27 million from hundreds of Albertans, disguising it as mortgage lending but instead used the money to pay off other investors.

Breitkreutz was convicted earlier this year for fraud in connection with the incident.

During Wednesday’s court proceedings, the Crown submitted a sentence of 10 to 12 years for the senior, with credit for time served since June 29 – the day he was convicted.

Prosecutors are also asking for him to pay $3.1 million in restitution and request he has a lifetime ban from trading in financial matters under section 380(2) of the Criminal Code.

Breitkreutz’s defence suggested a sentence of between five to eight years.

Way was sentenced to three years in prison last year but victims tell CTV News she is now out on parole after serving less than one year.


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