Victims allegedly scammed of $1M when asked to invest in fake business

Brian Desmond Penney, 48, has been accused of defrauding numerous victims of over $1 million by asking them to invest or provide start-up funding in a fake business. (Provided)

A Grande Prairie manager believes he is one of as many as 16 people who have allegedly been scammed of collective $1 million.

Jeff DeSutter is a corporate procurement manager for a pipeline company in the Peace Country area. The company had dealt with accused fraudster Brian Desmond Penney without significant problem—that is, until late 2018.

Occasionally, DeSutter said, Penney’s plating and steel business would be slow to deliver on a product, and Penney would come around with a boastful attitude.

“Any time I (saw) him, he had a different vehicle, a top-end vehicle. He always had a lot of money on him. He was always bragging about Oilers tickets, and knowing this person and that person.”

One time, Penney allegedly offered DeSutter a signed Boston Bruins jersey to make up for a late delivery.

“Just full of crap, all the time,” DeSutter recalled.

Then, DeSutter said Penney asked him to pay up front 50 per cent of a $45,500 product order that was supposed to arrive by October.

“Which was a no-brainer for us, because we do that with a lot of small business people to help cover initial costs to start up and materials,” DeSutter told CTV News.

An invoice and email correspondence he shared with CTV News showed a wire-transfer of $22,000 to Penney’s alleged company, Ti2 Plate & Profile, on Sept. 26.

But after months of delays and excuses, the Grande Prairie worker said he started to suspect the delivery wasn’t going to come and he sought legal action.

“Then one night sitting watching the 11 o’clock news I saw his picture plastered all over TV and I almost had a heart attack,” DeSutter recalled.

“It was very, very… embarrassing having to tell the people that own our company that I think that we were defrauded.”

DeSutter decided to share his story when Penney’s name resurfaced publicly on Tuesday, after Edmonton Police Service issued a warning where he is accused of defrauding as many as 16 people in a years-long bogus business scam.

The 48-year-old has allegedly approached people asking for investment in a steel fabrication business.

“In some instances, Penney was reportedly bringing his potential investors to a shop space in south Edmonton as a means of convincing them the business was legitimate,” police said in a statement.

However, EPS believes Penney has no intention of establishing the business, and that there could be additional victims.

EPS warned the public about Penney in March, after he was charged with fraud. At the time, two people told police they had been asked for $70,000 and became worried the deal was fake when they couldn’t find background information on his company.

Since then, police have received 14 more complaints totaling $1 million and dating back to 2017.

“Brian, you know, he’s pretty smooth,” DeSutter said.

“He’s delayed for getting stuff done because his wife is very sick with a liver problem. He had a minor heart attack. His brother just passed away. This and that. It was always an excuse.”

But it’s not that DeSutter was manipulated that makes him most upset: “We do so much business with the little guy. We do business on a handshake and good faith and help support a bunch of small vendors in the area.”

“It really puts a bad taste in your mouth trusting people.”

He hopes sharing the experience will prevent others from being taken advantage of in the same way.

Those who suspect they have been targeted by Penney or have more information are asked to contact EPS at 780-423-4567 and Crime Stoppers at 1-800-222-8477.