Alberta
‘Betrayal’: 10 years in prison for Calgary man in multimillion-dollar Ponzi scheme
By Bill Graveland in Calgary
A Calgary man who bilked his clients out of millions of dollars in a Ponzi scheme was sentenced Friday to 10 years in prison and ordered to pay $3.1 million in restitution for what the judge called a “deliberate and large-scale” fraud.
Arnold Breitkreutz, 74, was convicted in June of fraud over $5000 for what the Crown called a multimillion-dollar scheme in which investors believed they were putting money into safe first mortgages.
Court heard the money from his company, Base Financial, was instead loaned to an oil-and-gas promoter and used in a risky oil play in Texas that was secured against oil-and-gas leases and equipment.
The Crown recommended a sentence of between 10 and 12 years to send a message to others who might try a similar scheme.
Queen’s Bench Justice Colin Feasby said Breitkreutz’s actions warranted a significant sentence.
“His fraud was deliberate, large-scale and profoundly and adversely affected the lives of many victims,” said Feasby, noting the 29 victim impact statements the court received.
“These conditions were also provoked by the profound sense of betrayal experienced by many of the victims. Many of the victims had, over time, come to know and trust Mr. Breitkreutz, and some considered him to be a friend,” the judge said.
“The stark realization that he had defrauded them hit many of the victims hard.”
There were 107 victims between May 1, 2014, and Sept. 30, 2015, who provided Breitkreutz with more than $21.4 million.
Feasby said Base Financial had been operating since the 1980s and the scale of fraud could be much higher. He said the scheme was complicated enough to fool many individuals who were retirees and planning to enjoy their sunset years.
“One of the most insidious effects of Mr. Breitkreutz’s fraud on the victims was that it robbed them of their faith and trust in others,” said Feasby.
“The victims … blame themselves for being stupid, or foolish or greedy. They are none of these things.”
Feasby rejected an argument that the sentence should be more lenient because of Breitkreutz’s advanced age and the fact he lost his own money along with that of his clients when the Ponzi scheme collapsed.
“I accept that Mr. Breitkreutz did not enjoy the flamboyant lifestyle common to many fraudsters,” Feasby said.
“So far as the court can determine Mr. Breitkreutz lost the victim’s money finding providence in unauthorized investments and then playing a shell game for years and perhaps decades to try and avoid reckoning.”
Breitkreutz showed little emotion after the sentence. Earlier this week, he issued a brief apology to his victims.
“I can feel your loss and for that I’m unbelievably and indescribably sorry. It was not my intention when I accepted your money,” he said.
“I put your money in the same place that I put my own. Nonetheless, I feel for you deeply, as much as I can and I’m sorry.”
This report by The Canadian Press was first published Aug. 19, 2022.
Airtankers work on a wildfire near Edson, Alta., in a Friday, June 9, 2023, handout photo. The town was evacuated Friday night due to an out-of-control wildfire. THE CANADIAN PRESS/HO-Government of Alberta Fire Service
Edson
A town in western Alberta was under an evacuation order late Friday due to an out-of-control wildfire — its second such order this spring.
Local officials issued the evacuation for Edson and parts of Yellowhead County.
“We’re still evacuating the community and evacuating the hospital,” said Edson mayor Kevin Zahara.
“All things considered, so far so good — but the next 72 hours are going to be critical for us. We have a lot of warm temperatures in the forecast and it’s windy here right now.
“It’s going to be dependent on those winds and the weather on how this fire behaves.”
Alberta government officials said the fire burning near the community of about 8,400 jumped fire guards and moved closer to populated areas, including the town. They warned that there could be impacts to roads and highways if the fire crossed the guards and blocks evacuation routes.
“Because that fire is so out of control, some of the forestry crews have had to back off,” said Luc Mercier, chief administrative officer for Yellowhead County, in a video statement on one of the town’s Facebook pages. “They can’t fight that fire.”
Mercier said the fire could threaten Highway 16, the main east-west route in the area.
“We have significant concerns with egress along Highway 16 in the coming days,” he said. “The next 36 hours will be paramount with the winds coming forward.”
An update issued at 11 p.m. said live embers and flames were seen in Willmore Park, meaning the fire had crossed the river. The notice said if people had not left the area yet, “now is the time.” Officials said emergency crews were busy with fire operations and would not be able to respond if people needed help.
The Edson area, about 190 kilometres west of Edmonton, saw four new fire starts on Friday, said Mercier.
An unprecedented start to the wildfire season led Alberta to bring in a provincewide state of emergency on May 6. At one point, about 29,000 people were out of their homes in various communities.
The state of emergency was lifted last week.
On Friday afternoon, before the evacuation order was issued for Edson and the surrounding area, about 3,500 Albertans remained out of their homes.
Evacuation buses were leaving from three points in Yellowhead County and five in Edson. An evacuation centre was being set up in Edmonton’s Expo Centre.
Zahara said there had been little threat in the area as recently as four days ago. Hot weather and high winds put a stop to that.
“This fire has flared back up,” Zahara said.
“It’s really important people adhere to the evacuation order.”
He said no services, including fire and medical, would be available in Edson until further notice.
Edson was evacuated for three days in early May by another wildfire.
Zahara said at the time that he thought there was a good chance the town would be lost to the flames.
That evacuation took a heavy financial toll on townspeople through loss of income and unexpected expenses such as hotel rooms, he said.
— By Bob Weber in Edmonton
This report by The Canadian Press was first published June 9, 2023.
Premier Danielle Smith introduced her cabinet Friday, the second one since taking over as United Conservative Party leader in October. Here are the changes at a glance:
Second in command: Mike Ellis retains his Public Safety and Emergency Services portfolio but is also now deputy premier.
Big promotions: Mickey Amery moves from Children’s Services to Justice; Nate Horner moves from Agriculture and Irrigation to Finance; Adriana LaGrange already had a heavyweight title in Education but now takes on enormous responsibilities in Health.
New faces: RJ Sigurdson joins cabinet for the first time in Agriculture and Irrigation; Searle Turton is new in Children and Family Services; Dan Williams gets his first cabinet seat in Mental Health and Addiction.
Returning vets: Jason Nixon, the environment minister and government house leader under former premier Jason Kenney, is back in cabinet handling the Seniors, Community and Social Services post. Ric McIver, dropped from Smith’s first cabinet, returns in his old job of Municipal Affairs. Muhammad Yaseen, a former associate minister of immigration, now has full cabinet rank as minister of Immigration and Multiculturalism; Tanya Fir, former economic development minster under Kenney, is back in Arts, Culture and Status of Women portfolio.
Same faces, new jobs: Rebecca Schulz (Environment and Protected Areas), Brian Jean (Energy and Minerals), Nathan Neudorf (Affordability and Utilities), Joseph Schow (Tourism and Sport), Demetrios Nicolaides (Education), Rajan Sawhney (Advanced Education), Matt Jones (Jobs, Economy and Trade), Peter Guthrie (Infrastructure).
Same faces, same jobs: Nate Glubish (Technology and Innovation), Dale Nally (Service Alberta and Red Tape Reduction), Devin Dreeshen (Transportation and Economic Corridors), Todd Loewen (Forestry and Parks).
This report by The Canadian Press was first published June 9, 2023.
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