Arrests made in alleged Ponzi scheme

After a three-and-a-half year investigation, RCMP have laid charges ina Ponzi-type scheme that allegedly raised more than $100 million frominvestors in Canada, the U.S. and internationally.

After a three-and-a-half year investigation, RCMP have laid charges in a Ponzi-type scheme that allegedly raised more than $100 million from investors in Canada, the U.S. and internationally.

RCMP Supt. Eric Mattson said one man was arrested and charged with fraud over $5,000 and theft over $5,000 and officials say one more suspect is believed to be out of the country.

“This was a Ponzi-type investment where individuals raised money from others with the promise of a higher return,” Mattson explained, adding the alleged scheme took place between 1999 and 2008.

“(The) gold was located in places in South America and other places outside of Canada … but at the end of the day there was not sufficient gold to support … any type of return.”

Milowe Allen Brost, 55, of Chestermere was arrested and investigators are still seeking Gary Allen Sorenson, 66, of Calgary.

 
 
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