Calgary man, wanted for multimillion-dollar funding scam, turned himself in after returning from Czech Republic

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Lethbridge (September 28, 2020) – The Calgary man, Josef Korec, who was wanted for his role in a multimillion-dollar funding scam, turned himself in to Lethbridge police on September 23 after returning from the Czech Republic. Two months ago, the Lethbridge authorities laid charges against Korec and Dustin Ritter from southern Alberta in connection with an alleged multi-million dollar investment fraud. They are accused of defrauding a Lethbridge man out of more than $3.1 million during an alleged funding scam. Officers arrested Ritter on July 23 in Okotoks. However, Korec had fled Canada before he could be taken into custody.

Josef Korec from Calgary was wanted on a warrant in connection with a multimillion-dollar funding scheme since July of this year. Now, he surrendered to the Lethbridge police after returning from the Czech Republic, according to a police press release.

The multimillion-dollar funding scam

Two months ago, the Lethbridge police laid charges against Korec and Dustin Ritter from southern Alberta in connection with an alleged multi-million dollar funding fraud. They are accused of defrauding a Lethbridge man out of more than $3.1 million during an alleged investment scam. 2018, the victim was seeking $25 million in funding for a major project in Ontario.

Police said, Korec and Ritter agreed to finance the major project through the Calgary-based investment company RAEU Global.

RAEU Global and Taurus Capital – an Okotoks brokering firm – supposedly agreed to provide the money to the Lethbridge man. As part of the deal, the alleged victim was supposed to make a ‘down payment’ over $3.1 million. He allegedly raised the down payment through several of his own investors, but he never received the loan.

Suspect turned himself in

Officers arrested Ritter on July 23 in Okotoks. However, Korec fled to the Czech Republic before he could be taken into custody. Subsequently, Lethbridge police issued arrest warrants for Korec in connection with the multimillion-dollar funding scam.

During the investigation, officers discovered that the down payment funds were transferred to bank accounts belonging to associates of RAEU. Apparently, several of the accounts were located in the Czech Republic.

Now, the police informed the public that Korec returned to Canada from the Czech Republic on September 6. With the assistance of Alberta Justice and the Canada Border Services Agency, the Calgary man turned himself in to Lethbridge police on September 23, after staying in self-isolation for 14 days in Vancouver.

Multiple fraud charges laid

As a result of the fraud investigation, Lethbridge police laid charges against Korec and Ritter.

The 46-year-old Korec has been charged with fraud over $5,000, Possession of Property Obtained by Crime over $5,000, and Money Laundering. He was released from custody with numerous conditions and is currently on a $50,000 cash bail. Korec is scheduled to appear in court on October 21 in Calgary.

Read more: Alberta man found guilty of investment fraud in connection with land development schemes

His alleged accomplice, Ritter, has been charged with Fraud over $5,000 and Possession of Property Obtained by Crime over $5,000. On July 23, officers arrested Ritter. The Okotoks man has been released from custody and was scheduled to appear in court in Lethbridge on September 3.