CALGARY — The Crown asked for a sentence of 10 to 12 years Wednesday for a Calgary man who bilked clients out of millions of dollars in a Ponzi scheme.
Arnold Breitkreutz, 74, was convicted on June 29 of fraud over $5,000 for what the Crown described as a multimillion-dollar scheme in which investors believed they were putting money into safe first mortgages.
Court heard the money from his company, Base Financial, was instead loaned to an energy industry promoter and used in a risky oil play in Texas that was secured against oil-and-gas leases and equipment.
“The Crown submits that this actually was a trust situation,” said Crown prosecutor Shelley Smith, who told court that Breitkreutz was held in “high regard” by many clients after successfully running a mortgage-broker business for years.
Smith said during the period of the offence, between May 1, 2014, and Sept. 30, 2015, investors provided Breitkreutz with more than $21.4 million as a result of his “deceit.”
“The scheme was due to collapse at some point, but the fraud persisted for a period of 17 months,” she said.
“False contracts were distributed to investors, T5 (investment income tax slips) were also distributed to investors providing a gloss of legality to the scheme. With respect to the large number of victims in this case, 107 individuals were defrauded money.”
Smith is also asking that Breitkreutz pay restitution of more than $3.1 million.
The court received 29 victim impact statements. Two of…