A man awaiting sentencing for one investment scam now faces charges in connection with a second alleged real estate scheme.
Craig McMorran, who was already in custody, is charged with fraud over $5,000.
This new charge is in relation to alleged fraudulent lot sales at an undeveloped RV park located northwest of Sundre, Alta. Police initially stated the park was located southeast of the town.
Police say McMorran purchased approximately 94.22 acres of land in August 2017, using the company name Clearwater Cottages.
According to police, McMorran began advertising and selling lots with 99-year lease terms.
“Prices ranged from $39,900 to $69,900, while a combined lot and cottage package was sold for $169,000,” police say.
“Between August 2017 and September 2020, 26 lots were sold to unsuspecting victims.”
Police say McMorran began development of a campground in fall 2017, without a permit, and was told to stop by Clearwater County.
According to police, notices to stop were ignored, and in January 2022, a permanent injunction was issued.
Leaseholders were required to evacuate, police say.
“At this time, several of the victims, who reside in Calgary, were informed their lots were sold to them fraudulently, as the land was not approved for development or zoned for recreational use,” police say.
“We received several complaints, and the Calgary Police Service economic crimes unit began investigating.
“Throughout the investigation, it was determined the 26 lot owners have suffered a combined loss of approximately $1.5 million after believing they were purchasing legitimate RV lots.”
McMorran and Gus Kalabalikis were found guilty in September 2024 of selling RV sites near Lake Koocanusa between 2014 and 2017.
According to court documents, McMorran was working to develop a property called Sweetwater Resort at the lake, which is near Fernie, B.C.
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.
The court says 85 people were defrauded of more than $2 million.
Kalabalikis will be sentenced on April 10, but McMorran is set to be sentenced May 23.
With files from Michael Franklin
