May 25, 2018 (Calgary, Alberta) – The RCMP’s Federal Serious & Organized Crime Financial Integrity Unit yesterday arrested and formally charged 70-year-old Arnold Breitkreutz and 67-year-old Susan Way, both of Calgary, Alberta, with fraud over $5,000 and theft over $5,000 under sections 380(1)(a) and 334(a) of the Criminal Code. The charges relate to activities between May of 2014 and September of 2015.
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. Mr. Breitkreutz was the sole director and shareholder of Base Finance, and Ms. Way was listed as the corporate agent.
The RCMP allege that Mr. Breitkreutz and Ms. Way raised over $27 million dollars in 2014 and 2015, but used it contrary to what investors were told, which was that the funds would be used for mortgage lending. Instead, RCMP alleged investor funds were often used to pay out other investors. The estimated total loss for investors is in the millions of dollars. Due to the scope and complexities of the investigation, which has affected hundreds of investors throughout Alberta, the RCMP received assistance from the Forensic Accounting Management Group (FAMG), a division of Public Services and Procurement Canada, and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Further support was provided by the Alberta Securities Commission (ASC). The RCMP wish to thank these agencies.
“This has been an extremely complex investigation involving substantial resources, interviews and time” says Sergeant Doug Johnston of the RCMP Federal Serious and Organized Crime. “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.”
Arnold Breitkreutz and Susan Way will both next appear in Calgary Provincial Court on May 28, 2018. Conditions of their release include not to contact certain investors, to report to the RCMP regularly, to surrender their passports and remain in Canada, and not to deal with land or money or securities of others.
As this matter is now before the courts, the RCMP can provide no further details of the investigation at this time.
Calgary Serious & Organized Crime Financial Integrity Unit
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