By Justin Goulet

Gifting Circle Scam

Coaldale man faces fraud charges for ‘gifting circle’ scam

May 6, 2019 | 9:43 AM

COALDALE, AB – Lethbridge Police Service has charged a Coaldale man in connection with what’s called a ‘gifting circle’ scam.

An investigation by the Economic Crimes Unit found that between September 2018 and May 2019, gifting circles were introduced in Lethbridge, Calgary and Edmonton.

A gifting circle promises ‘no risk’ to the victim and guarantees a ‘gift’ of $5,000 will result in a return of $40,000. Once the $5,000 is paid, the person is asked to recruit two more people to ‘gift’ money.

LPS said this model requires the recruitment of new members to pay for existing members and eventually leads to a loss of funds by those who have paid in when the new recruits cannot be found.

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Police noted that witnesses who have come forward have said there are currently over 500 members and 80 gifting circles. The circles extend into British Columbia and Saskatchewan. According to LPS, losses involved would total $2,000,000.

The investigation identified one main presenter who was promoting the scam in Alberta. He has since been arrested and charged by LPS.

Steele Cameron Tolman, a 57-year-old from Coaldale, is charged with fraud over $5,000 and possession of the proceeds of crime over $5,000. Tolman was released from custody and is scheduled to appear in court on May 17, 2019.

LPS is asking anyone with further information about gifting circles to come forward.