CALGARY — A Calgary man is facing charges for an alleged Ponzi scheme that spanned several years and saw investors lose “considerable” amounts.
An investigation was launched by the Alberta RCMP Integrated Market Enforcement Team (IMET) following a complaint made by an investor against an individual with the company, Espoir Capital.
“The Ponzi scheme was conducted over multiple years and investors had their funds used in a manner contrary to investor agreements,” RCMP said in a release.
Vern Fauth, 73, of Calgary, is charged with fraud over $5,000, which police say relates to activities between January 2012 and July 2015.
Fauth was released from custody and is scheduled to appear in court next on Sept. 14.
“Unfortunately, the victims suffered a considerable loss as a result of their investment within the Ponzi scheme they believed was credible,” said Cpl. Christopher Girard, with the Alberta RCMP Integrated Market Enforcement Team.
“The economic and societal damage of these types of criminal acts are immeasurable and investors are reminded to remain vigilant with their investments. Albertans are reminded to remain aware of potential scams, conduct their due diligence with their investments and report when suspected criminal acts are believed to have occurred.”
IMET is a specialized unit that detects, investigates and deters market fraud. IMET works closely with the Alberta Securities Commission to promote compliance within the corporate community and assure investors that Canada’s markets are safe and secure.
Anyone with information about a market-related fraud is asked to contact IMET at CalgaryIMET-EIPMFCalgary@rcmp-grc.gc.ca.