Investor losses from Kelowna couple's Ponzi scheme may surpass $25M
A Kelowna couple behind an alleged Ponzi scheme may have defrauded victims of more than $25 million.
Kathleen Treadgold and Curtis Quigley operated a 12-year scheme in which victims, often from Kelowna, would invest in fictitious Edmonton-area real estate, supposedly belonging to elderly people moving into senior's homes, according to court documents.
Insolvency trustee for Quigley, Campbell Saunders Ltd. said the pair worked together and received more than $25.8 million for their scheme, which was used to pay off creditors, past investors that were waiting on their returns and for the couple's own lifestyle.
Treadgold and Quigley, both 56 years old, turned themselves in to Edmonton Police Service on Aug. 30, and they're facing a combined 80 counts of fraud over $5,000 and one count for money laundering.
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In a court response to Quigley's trustee, who was declared bankrupt in 2020, Treadgold denied having any knowledge of the alleged Ponzi scheme and said the common-law couple had an "arms-length" financial relationship.
Edmonton police said they were tipped off about the scheme in early 2020, which lead them to uncover nearly $8 million in fraudulent transactions, according to a news release. However, they said they believed there are more victims that haven't come forward.
Investors funnelled money into a fictitious company called "Group Venture Inc.," which would supposedly be used for the real estate purchases. They were given promissory notes with a repayment sometimes expected within a matter of months and a return of up to 80 to 90 per cent, according to court documents.
Instead, Quigley and Treadgold would use new investments to repay the older ones, amassing more than $174 million in money moved in 518 transactions, according to court documents.
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The scheme continued from November 2008 to August 2020, with more than 2,500 promissory notes given to investors in that time, the insolvency trustee said.
Although the scheme focused on Edmonton-area properties, it had reached investors internationally, according to Edmonton police. Victims were from as far away as Nevada and Australia.
The trustee said Edmonton police searched their home at 4303 Bedford Rd. in October 2020, seizing documents and property.
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A total 92 notices of motion have been filed against the couple in BC Supreme Court, with investors looking to get their money back. Quigley, however, had very little, if any, funds in his 11 bank accounts, court documents said. His assets include a boat, a motorcycle and half-interest in their East Kelowna home.
Treadgold, who denies knowledge of the scheme, avoided service of court documents in 2021. The trustee said a service processor went to the couple's home in February 2021 where a man, presumed to be Quigley, answered the door.
The man told the processor Treadgold would not be coming to the door, and their two large dogs charged him as he tried to explain why he had to serve Treadgold directly.
He dropped the envelope "in fear" and ran back to his car. He was then told not to return, court documents said.
It's not clear if or how victims will be repaid or exactly how much money remains unaccounted for.
None of the claims have yet been proven in court.
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