LPS charge two in multi-million dollar investment fraud

Jul 30, 2020 | 1:57 PM

LETHBRIDGE, AB – Lethbridge Police have arrested one person in a wide-scale fraud scheme while the other suspect has fled the country.

In June 2018, the Economic Crimes Unit launched an exhaustive, long-term investigation into a major fraud spanning multiple jurisdictions in Alberta, B.C., and Saskatchewan.

A Lethbridge man had been defrauded out of more than $3.1-million by Calgary-based investment company RAEU Global. The victim was seeking an investment of more than $25-million to build a major project in Ontario and needed capital to proceed.

RAEU and an Okotoks brokering firm, Taurus Capital, agreed to provide the money necessary but stipulated that a “down payment” of $3.1-million was required first.

The victim raised the money for the down payment by seeking out several of his own investors.

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The down payment was eventually provided to RAEU representatives but the loan was never fulfilled.

According to police, the money was transferred to multiple bank accounts belonging to associates of RAEU, including several accounts in the Czech Republic.

Josef Korec, 46, of Calgary, is charged with fraud over $5,000, possession of property obtained by crime over $5,000, and money laundering.

Korec fled Canada before he could be arrested and is currently residing in the Czech Republic. A warrant for his arrest has been issued.

Dustin Ritter, 36, of Okotoks, is charged with fraud over $5,000 and possession of property obtained by crime over $5,000

Ritter was arrested in Okotoks on July 23 but has since been released from custody by a Justice of the Peace. Ritter is scheduled to appear in court in Lethbridge on September 3.

by David Opinko