Red Deer man charged in $10 million Ponzi scheme

A year and a half investigation by Red Deer RCMP results in charges

Red Deer RCMP have charged a 45-year-old Red Deer man with money laundering and fraud against the public.

The charges come after conducting a search warrant at his home on Dec. 19th. The search is the culmination of a 20-month fraud investigation alleged to have cost its investors more than $10 million.

This complex investigation began in April of 2016 after RCMP received reports of suspected fraud involving the purchase, sale and rental of mobile light towers by Silvertip Energy Inc.

“This is an example of a Ponzi scheme, where the same light towers were bought and rented numerous times on paper, on behalf of a number of different investors,” says Cons. William Lewadniuk of the Red Deer RCMP financial crimes unit.

The RCMP investigation centred around allegations that the owner of Silvertip Energy, Joshua James Tenhove, had sold or rented light towers with the same serial number to multiple investors and had also sold or rented units that were never manufactured.

Victims of the fraud included five individual investors with estimated total losses of approximately $4 million, and four or more corporations in Canada and the United States with estimated collective losses of $6.2 million.

“Each level of a Ponzi scheme includes re-selling the same items to new investors, then paying a portion of that money to previous investors as if it were dividends,” says Lewadniuk. “Ponzi schemes are like pyramid schemes in that they rely on continually bringing in new investors in order to keep the previous ones from discovering the fraud.”

The Red Deer RCMP financial crimes unit worked closely with the United States Secret Service and FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) throughout this investigation.

The search warrant was executed by Red Deer RCMP at a residence on C&E Trail north of Red Deer. RCMP seized documents relating to the investments and electronics.

Tenhove faces the charges of laundering the proceeds of crime, three counts of fraud over $5,000 and possession of property obtained by crime over $5,000.

RCMP continue to investigate.

“I believe this may be the largest fraud file we’ve seen in Central Alberta,” said Lewadniuk. “The Red Deer RCMP’s cross-border collaboration with the US Secret Service and our ongoing partnership with FINTRAC were vital to its successful conclusion.”

FINTRAC is Canada’s financial intelligence unit. Its mandate is to facilitate the detection, prevention and deterrence of money laundering and the financing of terrorist activities, while ensuring the protection of personal information under its control. The United States Secret Service is mandated by Congress to carry out a unique dual mission: safeguarding the financial and critical infrastructure of the United States, and protecting the nation’s leaders.

Just Posted

Kenney talks pipelines with Trudeau after election win, calls it cordial

Almost a year ago Kenney dismissed Trudeau as a dilettante and a lightweight

ELECTION DAY: Lacombe-Ponoka heads to the polls

Voters came out to the Lacombe Memorial Centre to pick the next MLA of Lacombe-Ponoka

‘Open for business:’ Jason Kenney’s UCP wins majority in Alberta election

The UCP was leading or elected in 63 of 87 seats Tuesday night

Undercover cops don’t need warrant to email, text suspected child lurers: court

High court decision came Thursday in the case of Sean Patrick Mills of Newfoundland

VIDEO: Trump tried to seize control of Mueller probe, report says

Special counsel Robert Mueller’s report revealed to a waiting nation Thursday

Alberta RCMP reminds Albertans how to be ‘egg-stra’ safe this Easter

Put away phone while driving, plan for a designated driver

B.C. awaits Kenney’s ‘turn off taps,’ threat; Quebec rejects Alberta pipelines

B.C. Premier John Horgan said he spoke with Kenney Wednesday and the tone was cordial

Federal government extends deadline to make Trans Mountain decision to June 18

The National Energy Board endorsed an expansion of the Trans Mountain pipeline on Feb. 22

Precautionary evacuation for Red Deer, Alta., residents due to industrial fire

City officials are advising people to close windows and doors and to turn off air intakes into homes

Study links preschool screen time to behavioural and attention problems

The research looked at more than 2,400 families

Most Read