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Winnipeg Free Press - PRINT EDITION

Fraud bilked Manitobans of $1.4M, RCMP charge

8 fell victim to alleged scam

By: James Turner

Posted: 02/6/2009 1:00 AM | Comments: 0 (including replies)

EIGHT Manitobans have been bilked out of more than $1.4 million after becoming ensnared in what RCMP say was a complex scheme drummed up by six fraudsters.But the number of people scammed and the total dollar amount could actually be much higher, a victim taken for more than $500,000 in the scheme said Thursday.

Five suspects have been arrested and charged with conspiracy to commit fraud and a sixth man is wanted on a Canada-wide arrest warrant, RCMP Sgt. Line Karpish said.

Police are alleging that the men used a shell company called HSN Management to approach and encourage people to invest in a business that would finance the purchase and resale of used restaurant equipment, which would be trucked to the United States and sold for a quick profit.

Investors were told they could expect at least a 20 per cent return on their money. But when it came time to be paid, "they got nowhere," Karpish said. The money, police allege, was simply gone.

Don Masson of Ste. Rose du Lac said he was approached as a potential investor by one of the suspects in 2000.

The former restaurateur said that he was promised a quick 25 per cent return on his money. After six months of patiently waiting to be paid his dividend, however, Masson knew he'd been had.

"He said it was like money in the bank," Masson said. "It all made sense if it was the truth, but it wasn't."

Masson isn't telling exactly how much he lost, but admitted it was more than $500,000.

While he indicated anger over being taken in, the worst part is his embarrassment at getting his brother and son involved. He's since repaid his relatives out of his own pocket, he said.

"It's like if you go on a bad trip and you come home to tell everyone what a great trip you had," Masson said of how he coped while secretly knowing he'd been taken. He's still angry at the suspects and himself, he said.

"They laughed at me while they lived the high life."

RCMP have been building their case against the suspects for years now, and have been making considerable efforts to trace where the money went. Charging documents filed in court show that investigators believe the scheme was in operation between Jan. 1, 1999 and March 2004.

There are other investors too embarrassed to come forward to police and admit they've been victimized in the fraud ring, Masson said.

Masson added he never expects to see his cash again. "RCMP aren't in the business of collecting money," he said.

It was just weeks ago -- after a couple of arrests took place -- that Masson said he was contacted and left a message saying, "Sorry for what we did to you," and offered a cheque to make it up to him.

No money arrived, but he wasn't expecting it to.

He said he dealt with one suspect in particular all the time.

He was never allowed to actually go to see the restaurant equipment, which he was told was housed in a warehouse.

Another victim, who lives in Dauphin, said he is happy to hear of the arrests but declined to speak further until the court case against the men is concluded.

Ronald Simpson, 66, Abraham Reimer, 57, Peter Gay, 51, Phong Doan, 33 and Christopher Bray, 33 are charged with conspiracy to commit fraud and fraud over $5,000.

Bray's 55-year-old father, Kenneth Bray, is currently wanted by police and believed to be somewhere in the B.C. interior.

james.turner@freepress.mb.ca

Republished from the Winnipeg Free Press print edition February 6, 2009 A7

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