Article content

A Coaldale man accused of operating a “gifting circle” scam took in at least $2 million from hundreds of people across western Canada, according to Lethbridge Police.

Steele Cameron Tolman, 57, is charged with fraud over $5,000 and possession of the proceeds of crime over $5,000. Tolman, who police identified as the scheme’s “main presenter,” is to appear in court May 17.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Coaldale man accused of collecting $2 million from 'gifting circle' scam Back to video

The alleged operation promised investors who gifted $5,000 would receive a $40,000 return, at no risk, say police. Once payment was made, the recipient would have to recruit two more people to gift money.

“This model requires the recruitment of new members to pay for existing members and eventually leads to a loss of funds by those who have paid in when new recruits cannot be found,” Lethbridge Police said in a statement.

Witnesses told investigators more than 500 people were drawn into 80 gifting circles in Alberta, B.C. and Saskatchewan during the past nine months. Losses are expected to total at least $2 million.

Police warn that anyone receiving payments through a gifting circle could face charges, as would anyone who promotes the scheme or recruits members.