Appeal denied for Calgary man convicted in multimillion-dollar Ponzi scheme

Ponzi scheme appeal denied

Photo: The Canadian Press

The Calgary Courts Centre is pictured in Calgary, Monday, May 6, 2024. An Alberta court has denied the appeal of a Calgary man convicted three years ago of a Ponzi scheme that saw his clients bilked out of millions of dollars. THE CANADIAN PRESS/Jeff McIntosh

An Alberta court has denied the appeal of a Calgary man convicted three years ago of a Ponzi scheme that saw his clients bilked out of millions of dollars.

Arnold Breitkreutz was sentenced to 10 years in 2022 in what the Crown called a multimillion-dollar scheme where more than 100 investors believed they were putting money into safe first mortgages.

Breitkreutz's appeal argued the judge made legal errors and that his trial counsel was not experienced enough to handle such a case, causing a miscarriage of justice.

Court of Appeal judges say the trial counsel’s performance was not perfect, but they are satisfied that no miscarriage of justice occurred and that the trial was "fundamentally fair."

They also say the trial judge did not commit any errors in his analysis or assessment of evidence heard in court.

Court heard the money from Breitkreutz's company, Base Financial, was loaned to an oil-and-gas promoter and used in a risky oil play in Texas that was secured against oil-and-gas leases and equipment.