Charges laid in $7.8M real estate Ponzi scheme in Alberta, B.C.

A man and a woman are facing dozens of charges in a $7.8 million Ponzi scheme targeting investors in Alberta and B.C. after they turned themselves in, Edmonton police say.

Officers say the pair offered securities in the form of promissory notes to guarantee investors a set return on their investment, which was presented as a real estate flip.

Police allege the scheme was often run under the company name “Group Venture Incorporated” and is believed to have been run from 2008 to 2020. Edmonton police say they became aware of it in 2020.

It is believed to have been run out of Edmonton and Kelowna, B.C. Police say some victims were located in Nevada and even as far as Australia.

Police say 56-year-old Curtis Gordon Quigley and 56-year-old Kathleen Treadgold turned themselves in Wednesday.

The two are being charged with 80 counts of fraud over $5,000 and one count of laundering proceeds of crime.

“Ponzi schemes work on the premise of providing initial financial gain, so most victims believe the investment to be profitable and then invest additional principle,” said EPS Det. Herczeg in a news release.

“In most Ponzi schemes, some initial investors will receive a full return on their investments, and the fraudster then uses those individuals as references to convince the more skeptical investors to buy in.”

Investigators remind investors that investment opportunities should provide some form of verification, using a real estate listing and land title as an example when purchasing real estate.

Prospective investors should also research the company to confirm that it is a legal entity by searching on Google to see if the company pops up, checking with the Better Business Bureau, and doing a corporate search to see if the business is legally registered.