Man Convicted in Billion-Dollar Ponzi Scheme to Face Sentencing Hearing Next Month

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Convicted fraudster Arnold Breitkreutz will face a sentencing hearing next month, it was determined Friday.

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Crown and defense attorneys appeared briefly at Calgary’s Queen’s Bench Court to schedule a half-day sentencing hearing on August 17.

Crown prosecutor Brian Holtby told Justice Earl Wilson that his fellow Queen’s Court justice, Justice Colin Feasby, who convicted the septuagenarian from Calgary last month of massive mortgage fraud, is subject to the sentence. from Breitkreutz.

“Through the court schedule we have scheduled August 17 … for noon,” Holtby said, speaking on behalf of himself and his defense attorney Cale Ellis-Toddington.

He said Breitkreutz, 74, who is in custody pending sentencing, was not required in court for the brief scheduled appearance.

Wilson ordered that custody officials bring Breitkreutz to court that day to face his sentencing hearing.

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Breitkreutz was convicted on June 29 of fraud in connection with what the Crown called a multibillion-dollar Ponzi scheme in which investors believed they were putting money into what they thought were secure first mortgages.

Feasby found that Breitkreutz intentionally misled investors into believing they were pouring money into safe investments secured by first mortgages when, in fact, it diverted the cash into risky and ultimately unsuccessful deals.

But he said the true extent of the Breitukreutz crime was not easy to determine.

The judge noted that the charges against Breitkreutz, who received funds through his Base Finance Ltd., were reduced to the period from May 1, 2014 to September 30, 2015, but his criminal behavior occurred over a longer period.

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“The narrow temporal scope of the charges and the limited number of witnesses and documents presented in court during the trial means that these reasons do not, indeed cannot, tell the entire story of Base Finance’s failure and Mr. Breitkreutz. Feasby said.

“While total investor losses in Base Finance are said to exceed $100 million, this estimate cannot be verified because it includes losses on investments made prior to May 1, 2014,” he said.

“Investment losses from investing activity in the relevant period are less than $100 million, but are still material.”

Feasby ordered Breitkreutz’s arrest after finding him guilty.

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On twitter: @KMartinCourts

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