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Man arrested in alleged Ponzi scheme
Published Tuesday, September 29, 2009 4:58PM MDT
One of the Calgary men accused in a multi-million dollar Ponzi scheme was arrested by police on Tuesday.
66-year-old Gary Allen Sorenson was taken into custody at the Calgary airport as he stepped off a plane.
Sorenson and 55-year-old Milowe Brost of Chestermere are charged with fraud and theft over $5000.
The pair allegedly diverted over $100 million from thousands of local and international investors between 1999 and 2008.
Sorenson and Brost are accused of creating a business, Syndicated Gold Depository S.A., based on the gold commodity.
The company allegedly agreed to loan money to Merendon Mining Corporation in return for a high rate of return.
The high rate of return and promises of tax advantages was then used to entice investors into putting their money in off shore shell companies like Asset Trax Inc., Quatro Communications Corp., Rapid Express Corporation, Strategic Metals Corp., and Merendon Mining (Nevada) Inc.
Nominees were allegedly put in place by Brost and Sorenson to run the shell companies which were then marketed by Brost's companies, Capital Alternatives Inc. and the Institute for Financial Learning (IFFL).
It is believed that Gary Sorenson had been living in Honduras before his arrest.
Sorenson went before a justice of the peace and was granted bail.
He had to surrender his passport to authorities and must remain in Alberta to report weekly to the RCMP.
If convicted, both men could face sentences of up to 14 years.
Anyone who believes they have been victimized in this scheme is asked to call 403-292-8827 to speak with investigators.