The RCMP’s Federal Serious & Organized Crime Financial Integrity Unit in Calgary has arrested and charged Arnold Breitkreutz, 70, and Susan Way, 67, with fraud and theft over $5,000.
RCMP allege the pair raised $27 million from investors in 2014 and 2015, purportedly to fund mortgage lending. In fact, police allege that the funds were often used to pay other investors.
The allegations have not been proven.
The charges follow a referral from the Alberta Securities Commission (ASC), which concluded its own hearing against the pair earlier this year.
An ASC hearing panel found that the pair raised approximately $137 million from investors between 2004 to 2015, and that approximately $125 million of that was paid out to investors. The ASC has yet to hand down sanctions in the case. A hearing on sanctions is scheduled to start June 5.
“This has been an extremely complex investigation involving substantial resources, interviews and time. We are pleased to be able to conclude this investigation with charges and extend our gratitude to the various agencies who provided support to the RCMP,” said Sergeant Doug Johnston of the RCMP Federal Serious and Organized Crime in a statement.
Breitkreutz and Way are scheduled to appear in Calgary Provincial Court today, May 28.