One of two men found guilty of an investment fraud that scammed millions out of victims who believed they were buying vacation property near Lake Koocanusa in B.C., was sentenced in a Calgary courtroom Thursday.
Justice Nicholas Devlin sentenced Gus Kalabalikis to a conditional sentence order for two years, followed by a year of probation.
He will also have to pay $800 per month to victims.
The first year, Kalabalikis will be under house arrest followed by a second year of a curfew between 8:00 pm to 6:00 a.m.
His co-accused, Craig McMorran remains in custody and will be sentenced on May 23rd.
Kalabalikis and McMorran were found guilty in September 2024 of selling RV sites near the lake, which is near Fernie, between 2014 and 2017.
They were convicted of defrauding 85 investors of $2 million in a failed resort.
Court heard McMorran was working to develop a property called Sweetwater Resort at the lake.
In 2012, RV owners paid to park their trailers at an existing campground, but two years later, all property not sold or subdivided was foreclosed on.
‘Not closure yet’
One of the victims, Michelle Brosseau of Calgary, said she was pleased with the results.
“It’s a step towards closure. It’s not closure yet,” said Brosseau.
She was promised a piece of land for $8,500 and hopes McMorran will receive a tougher sentence.
“I’m OK with it,” she said. “The big ones coming on May 23rd.”
McMorran was also recently charged with fraud over $5,000 in a second alleged real estate scheme.
This new charge is in relation to alleged fraudulent lot sales at an undeveloped RV park located northwest of Sundre, Alta.
Police allege 26 lot owners suffered a combined loss of around $1.5 million dollars.
With files from CTV’s Michael Franklin and Damien Wood
