‘Losing a dream’: Calgary man sentenced to prison for vacation property scam

A Calgary man has been sentenced to prison for a real estate scheme impacting dozens of people seeking the perfect vacation property.

A Calgary man has been sentenced to prison for his part in an investment scam that took millions of dollars from victims trying to buy a vacation property in B.C.

A judge made the ruling for Craig McMorran, 65, on Friday afternoon in a Calgary courtroom filled with victims of the scheme.

McMorran was convicted in 2024 of selling fraudulent RV sites at a development called Sweetwater Resort near Fernie, B.C., between 2014 and 2017.

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He’ll now serve five years in prison for fraud, one year for theft and an additional six months for money laundering that will be served concurrently.

McMorran was also ordered to pay $869,000 in restitution.

“It’s been very long. It’s been very draining on many victims,” said Michelle Brosseau, who originally bought one of the RV lots in 2009.

“A lot of people, their impact statements were all about, you know, losing a dream and losing their life savings. And that’s something they can never, never, never replace,” she added.

Cindy Vander Heyden, another victim, planned on living in her RV during her cancer treatment.

“You would think I’d feel relieved. I’m mostly just sad. Sad that it had to come to this. Saddened that so many people had to get hurt,” said Cindy Vander Heyden.

“There is no money that can heal everything that has happened in the last 10 years.”

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.

After the foreclosure began, the court said McMorran began selling unsubdivided lots on a 50-year lease, with an option to buy the land once the subdivision was completed.

Once the foreclosure was complete, the new owner of the land denied access to anyone who had signed leases.

Another Calgary man, Gus Kalabalikis, was also found guilty of fraud for selling the RV sites.

Kalabalikis, also known as Kosta, was sentenced in April. He was given a conditional sentence order for two years, followed by a year of probation.

Other charges

McMorran is also facing charges related to an alleged real estate investment scam in Alberta.

McMorran is accused of defrauding 26 individuals who purchased RV lots northwest of Sundre, Alta., resulting in approximately $1.5 million in losses.

Police say McMorran bought about 94 acres in August 2017 under the name Clearwater Cottages, then began illegally selling 99-year lease lots without permits.

Between 2017 and 2020, 26 lots were sold for $39,900 to $69,900, or $169,000 with a cottage.

Despite being ordered to stop development in 2017, McMorran continued until a court issued a permanent injunction in January 2022, forcing leaseholders to evacuate.

McMorran is set to appear in court again June 3.

With files from CTV’s Michael Franklin and Teri Fikowski