City man pleads guilty to role in $23M fraud

While one of his victims sobbed in the back of a Calgary courtroom, a city man pleaded guilty Friday for his role in bilking $23 million from hundreds of investors.

Varun ( Vinny) Aurora pleaded guilty in provincial court to fraud over $5,000 in a scheme centring on Mexican real estate investments.

One of those scammed was his own father, who lost the largest amount — $901,000 — in the fraud run by Concrete Equities Inc. that roped in 1,200 investors, about 20 of whom showed up in court.

The play, which began in 2007, sold investor units in a Mexican development known as the El Golfo project, whose purchase price Concrete Equities greatly inflated for investors.

The company “purchased it for less and just pocketed the money,” said Crown prosecutor Shawn Johnston.

“It was an advanced hucksters’ scheme that sold people real estate that absolutely didn’t exist.”

Some of the investors’ cash was also moved into other investments not known to them, while the supposed ringleader, David Nelson Humeniuk, allegedly pocketed $1 million, says the Crown.

Humeniuk faces his own trial in November 2017.

While Aurora’s role was more supportive than leading, he signed off on offering memos and was “wilfully blind” to the scam, said an agreed statement of facts.

It also stated, “to the extent that money which was raised for the El Golfo project was being transferred or lent to other CEI businesses, Mr. Aurora was an officer and should have known about those transactions.”

“He was brought in and used because he was naive and now he’s being sentenced because he was naive,” Johnston said.

Aurora has agreed to pay $1 million in restitution and awaits sentencing, which both the Crown and defence have agreed should be two years’ conditional penalty that would include a curfew but not prison time.

That payment would translate to $428.45 for each $10,000 investment.

Several victim- impact statements were read by Johnston in court, detailing the financial destitution, emotional and physical damage wrought by the rip-offs.

One victim, in her 40s, said she’d sold her home to use the money for the investment, only to lose it all.

“I invested my money in good faith with the best information I had,” she wrote. “I also had my confidence, trust and well-being stolen. ... (Aurora’s) responsible for making my life a living hell.”

Other investors said they lost their homes as a result of their losses, with one couple moving in with their adult daughter.

“I have no RSP, no extra cash flow, it’s all been lost to a greedy man. ... I have feelings of betrayal,” wrote investor Gordon Shaw. “I’m upset and unable to relax.”

Cameron Christianson wrote that his retirement nest egg has vanished and that “the loss of these funds has caused us to work longer than we’d planned.”

Johnston also noted Aurora’s been fined $500,000 by the Alberta Securities Commission but has only paid “a pittance” of $63.70.

While the Crown is calling for Aurora to do the maximum 240 hours of community service as part of his sentence, defence lawyer Brian Beresh argued for 150 hours.

Beresh noted Aurora has no previous criminal record and said he has an otherwise sterling standing in the community.

Judge Joanne Durant said she’ll hand down a sentence Wednesday.