Calgary

2 Calgarians charged in alleged multimillion-dollar fraud

RCMP allege Arnold Breitkreutz, 70, and Susan Way, 67, raised more than $27 million 'but used it contrary to what investors were told, which was that the funds would be used for mortgage lending.'

RCMP says Arnold Breitkreutz and Susan Way defrauded investors through their company Base Finance Ltd.

Two people have been arrested for an alleged multimillion-dollar fraud in Calgary. 

RCMP allege Arnold Breitkreutz, 70, and Susan Way, 67, raised more than $27 million "but used it contrary to what investors were told, which was that the funds would be used for mortgage lending."

The cost to investors is estimated in the millions, according to RCMP.

"Following a referral from the Alberta Securities Commission in 2015, the RCMP investigated allegations of fraud in the operations of Base Finance Ltd., a corporation allegedly controlled by Mr. Breitkreutz and Ms. Way," reads a news release. 

"Mr. Breitkreutz was the sole director and shareholder of Base Finance, and Ms. Way was listed as the corporate agent."

'Extremely complex investigation'

Breitkreutz and Way both face charges of fraud over $5,000 and theft over $5,000 for allegedly using the funds raised to pay off other investors. 

"This has been an extremely complex investigation involving substantial resources, interviews and time," said the RCMP's Sgt. Doug Johnston (Federal Serious and Organized Crime - Financial Integrity) in the news release. 

"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."

The news release says help was provided by the Forensic Accounting Management Group and the Financial Transactions and Reports Analysis Centre of Canada, with support from the Alberta Securities Commission.

Released on conditions

Mounties say hundreds of investors across Alberta were affected. 

The two accused will next appear in Calgary Provincial Court on May 28.

They have been released on the conditions they do not contact certain investors, surrender their passports and remain in Canada, not deal with land or money or securities that belong to others and to regularly check in with the RCMP.