Sentencing delayed for men convicted in Lake Koocanusa fraud

The sentencing hearing for Craig McMorran and Gus Kalabalikis, two men found guilty of defrauding people of millions of dollars, has been delayed.

A judge has delayed sentencing for two Calgary men found guilty of an investment scam that bilked millions out of victims dreaming of the perfect vacation property in B.C.

Craig McMorran and Gus Kalabalikis were found guilty in September 2024 of selling RV sites near Lake Koocanusa between 2014 and 2017.

According to court documents, McMorran was working to develop a property called Sweetwater Resort at the lake, which is near Fernie, B.C.

In 2012, RV owners paid to park their trailers at an existing campground, but two years later, all property not sold or subdivided was foreclosed on.

The court says 85 people were defrauded of more than $2 million.

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One of the victims is Michelle Brosseau of Calgary, who was promised a piece of land for $8,500.

She attended the court hearing on Monday and is happy the pair will be punished for their crimes.

“It’s been long. It’s been stressful on many, many victims and I think justice will prevail,” she told CTV News.

Kalabalikis will be sentenced on April 10, but McMorran, who remains in custody, will need to find a new lawyer before his sentencing date is set.