‘ Economic predator’ facing new charges

A Calgary man described by the judge as an “economic predator” when he was sentenced a decade ago to seven years in prison for a $ 1.5- million investment fraud is facing similar new charges.

Daryl Heiligsetzer, 52, made his second appearance in provincial court on Wednesday to face two counts each of fraud over $ 5,000 and theft over $ 5,000, in which he was allegedly seeking local investors to help purchase the Elbow River Casino.

Assigned Crown prosecutor Tony Bell said Wednesday the accused allegedly used a false identification and approached people seeking to get them involved in the purchase of the casino, which he did not own. He claimed he had a buyer but needed representation from local ownership.

Bell said the accused told people they were guaranteed to get their money back quickly.

He said the alleged offences, involving 45 investors and in excess of $ 400,000, occurred between January 2009 and November 2010, while Heiligsetzer was still on parole for the previous frauds for which he was sentenced on July 5, 2005.

Bell said the two charges relate to victims who virtually all had ties to Alberta, but were divided into two groups: One based on when Heiligsetzer was living in Calgary and the other group when he was residing in Vancouver.

In the previous fraud, Heiligsetzer bilked dozens of people — most of them trusting city cops — out of more than half of their $ 2.87 million in investments in a hockey equipment company.

“Daryl Heiligsetzer, for 31 months from January 2001 until July 2003, concocted and perpetuated a massive, fraudulent scheme through lies, deceit and false pretences,” provincial court Judge Brian Stevenson said at the time.

“He was able to establish credibility to the scheme in two ways: Using well- known trade names of products ... and ( Staff Sgt.) Kirk McCallum, a longtime friend and associate.”

Stevenson sentenced Heiligsetzer to seven years less double credit for nine months of pretrial custody, leaving him with 5 1/ 2 years still to serve for the socalled “Ponzi” scheme, in which the offender paid initial investors their profits from subsequent investors’ money.

The fraudster used $ 1,226,967 of the fraudulent profits for himself ($ 261,897), his wife ($ 154,655), his girlfriend ($ 196,557) and the business expenses of his company, Flarrow Hockey Sticks ($ 613,858).

An agreed statement of facts indicated Heiligsetzer approached friends and acquaintances and told the potential investors that his sporting goods business could purchase outdated hockey equipment from Bauer or Easton at reduced prices and sell it to small retailers in Canada, the United States and Europe.

He said he needed money to pay the suppliers in advance and guaranteed investors between 15 and 35 per cent return on their money within 90 days of the investment.

One of the initial investors was McCallum, who was brought into the company as a 42 per cent partner.

McCallum, according to the court document, solicited family members, friends and police associates. These investors provided McCallum with cheques or bank drafts for deposit to his account. McCallum distributed the proceeds to the investors dealing with him.

McCallum also faced fraud charges in connection with the scheme, but was cleared of any wrongdoing.

Heiligsetzer will be back in court on Nov. 13.

Daryl Heiligsetzer ... concocted and perpetuated a massive, fraudulent scheme through lies, deceit and false pretences.

JUDGE BRIAN STEVENSON