Home / Business and Economy / Alberta Company Faces $35M Fraud Ruling
Alberta Company Faces $35M Fraud Ruling
4 Feb
Summary
- Sunterra engaged in 'cheque kiting' on a massive scale, transferring billions.
- A judge ruled Sunterra liable to Compeer Financial for $35 million.
- The company's president was found personally responsible for the debt.
An Alberta-based company, Sunterra, has been found liable for $35 million US in a civil action concerning "cheque kiting." Justice Michael Lema of the Court of King's Bench in Calgary ruled that Sunterra's Canadian and U.S. entities engaged in fraudulent misrepresentations.
The scheme involved high-volume, large-amount intercompany cheque transfers between Sunterra's Canadian and U.S. operations. These transfers, totaling almost $6.3 billion in 2024, were not tied to actual business activity but were used to cover account shortfalls, as detailed in the January 27th decision.
Compeer Financial, an American lender, ultimately experienced a net loss of approximately $35 million US after freezing Sunterra's accounts in February 2025. The ruling declared Sunterra president Ray Price personally liable for the debt, stating he directed the practice.
