Man charged with fraud after victim losses of over $10 million

Red Deer RCMP began investigation in April of 2016

Red Deer RCMP have charged a 45-year-old Red Deer man with money laundering and fraud against the public after conducting a search warrant at his home on Dec. 19th; the search warrant 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. The RCMP investigation centred around allegations that the owner of Silvertip Energy 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, for total losses of approximately $10.2 million.

“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 Constable William Lewadniuk of the Red Deer RCMP financial crimes unit. “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. 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 on Dec. 19th at a residence on C&E Trail north of Red Deer. RCMP seized documents relating to the investments and electronics.

Joshua James Tenhove, 45, 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.

-Connolly

Just Posted

Lacombe Market vendor supporting family who lost their home

Lyndall Cave will be selling jewellery until the end of August

Lacombe Composite’s Ecovision Club, Friends of the Greenhouse preparing for successful harvest

LCHS students and community members keep programs growing throughout summer

Red Deer- Lacombe MP disapointed by Liberals blocking hearings on SNC-Lavalin affair ethics report

MP Calkins said Canadians will pass a verdict over the affair during the upcoming election

Red Deer-Lacombe MP Calkins comments on CPC promise to make maternity benefits tax free

Tax credit would remove federal income tax from EI maternity and EI parental benefits

WATCH: Lacombe Days parade rolls through city

Hundreds turn out for annual tradition

Red Deer Rebels Training Camp begins Aug. 24

Rebels home opener will be on Sept. 21 against the Edmonton Oil Kings

UPDATED: Search continues for possible drowning on Sylvan Lake

Sylvan Lake RCMP and Fire Department continue their search for 20-something adult male

New study suggests autism overdiagnosed: Canadian expert

Laurent Mottron: ‘Autistic people we test now are less and less different than typical people’

Huawei executive’s defence team alleges Canadians were ‘agents’ of the FBI

eng’s arrest at Vancouver’s airport has sparked a diplomatic crisis between Canada and China

Trans Mountain gives contractors 30 days to get workers, supplies ready for pipeline

Crown corporation believes the expansion project could be in service by mid-2022

On vaccines, abortion, Goop, doctor Jen Gunter says: ‘I have a duty to speak up’

She speaks out on menstruation, the wellness industry and vaccines

RCMP and fire departments respond to possible drowning on Sylvan Lake

RCMP say they are actively searching for a man in his 20s with boats on the lake

Most Read