A Chestermere man has been charged with fraud after allegedly deceiving dozens of victims into purchasing lots at an unapproved RV park southeast of Sundre, resulting in a total loss of approximately $1.5 million.
Craig Douglas McMorran, 64, is accused of selling 26 fraudulent lot leases under the company Clearwater Cottages Ltd. between August 2017 and September 2020.
Authorities say McMorran purchased 94.22 acres of land in August 2017 with plans to develop an RV campground. He then began advertising and selling lots with 99-year lease terms, with prices ranging from $39,900 to $69,900.
A combined lot and cottage package was sold for $169,000.
Despite not having an approved development permit, McMorran allegedly began construction on the property in fall 2017.
Clearwater County issued cease-development notices, but he continued the work.
In January 2022, a court order led to a permanent injunction against the RV park’s development, and all leaseholders were required to vacate their properties by June 30, 2022.
It was then that several victims, many of whom are from Calgary, discovered their purchases were fraudulent, as the land had never been approved for development or zoned for recreational use.
Complaints were filed, prompting an investigation by the Calgary Police Service Economic Crimes Unit.
McMorran has now been charged with fraud over $5,000 and remains in custody on an unrelated matter. He is scheduled to appear in court on Tuesday, May 6.
Authorities are urging potential buyers of real estate, property, or vacation lots to conduct thorough research and have legal professionals review all transaction documents before making purchases. Anyone who believes they have been a victim of fraud is encouraged to report it to police at 403-266-1234. Anonymous tips can be submitted through Crime Stoppers at 1-800-222-8477 or online at www.calgarycrimestoppers.org.