A 64-year-old man from Chestermere has been charged with fraud by police in Calgary after allegedly selling lots on land in Clearwater County that was not approved for development or zoned for recreational use.
In a press release issued Thursday, April 3, the Calgary Police Service said the man “is believed to have defrauded dozens of victims through fraudulent lot sales at an undeveloped RV park" located in the county.
The accused is said to have purchased approximately 94.22 acres of land northwest of Sundre in Clearwater County closer to Caroline in August 2017 under a company called Clearwater Cottages Ltd. with the intention of developing an RV campground, police reported.
The suspect then began to advertise and sell lots with 99-year lease terms with prices ranging from $39,900 to $69,900 while a combined lot and cottage package was sold for $169,000. A total of 26 lots were sold to unsuspecting victims between August 2017 and September 2020, said police.
The suspect had during the fall of 2017 reportedly begun to develop a portion of the land into a campground despite not having an approved development permit in place.
Although Clearwater County issued a cease-and-desist notice on the development, the accused nevertheless continued construction.
A court order issued in January 2022 subsequently resulted in a permanent injunction for the RV park’s development and all leaseholders were required to evacuate their properties by June 30, 2022.
At that time, police said several of the victims, who reside in Calgary, were informed their lots had been fraudulently sold as the land was not approved for development or zoned for recreational use.
After receiving several complaints, the Calgary Police Service Economic Crimes Unit began investigating. During the course of the investigation, police determined the 26 lot owners had suffered a combined loss of approximately $1.5 million after believing they were purchasing legitimate RV lots.
As a result, Craig Douglas McMorran, 64, of Chestermere, was charged with fraud over $5,000.
Police said McMorran is currently remanded over an unrelated matter and will next appear in court on Tuesday, May 6.
“Individuals looking to purchase real estate, property or vacation lots are reminded to research the company and have a lawyer review any documentation in relation to the transaction,” said police.
“We encourage anyone who believes they are a victim of fraud to report it so we can investigate appropriately.”
Anyone with information about these incidents or who believes they are a victim of fraud, is asked to contact police by calling 403-266-1234. Tips can also be submitted anonymously to Crime Stoppers either by calling 1-800-222-8477, going online to www.calgarycrimestoppers.org or by using the P3 tips app.
