Calgary man convicted in multimillion dollar Ponzi scheme to be sentenced

Ponzi scheme sentence

A Calgary man who bilked his clients out of millions of dollars in a Ponzi scheme is scheduled to be sentenced today.

Arnold Breitkreutz was convicted in June of fraud over $5,000 for what the Crown described as a multimillion-dollar scheme in which investors believed they were putting money into safe first mortgages. 

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

The Crown is recommending a sentence of between 10 and 12 years to send a message to others who might try a similar scheme.

The defence says a sentence of five to eight years would be more reasonable.

The 74-year-old, who offered an apology to his clients this week, has been in custody since he was found guilty on June 29.

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