The former vice-president of a high-end wine agency who was fired for “moonlighting” by making side deals now faces criminal charges in what Calgary police are calling a $1.3-million Ponzi scheme involving wine.
Police say Brian Robert Gunsten, 52, defrauded seven people in a scam that was “disguised as an investment opportunity involving wine purchases.”
Gunsten, 52, faces charges of fraud over $5,000 and money laundering.
The seven investors contacted police claiming to have been defrauded out of more than $1.3 million between January 2020 and February 2021.
‘Opportunity was a scam’
Gunsten is accused of approaching several people with an “investment opportunity” that he claimed was “low risk with high returns,” said CPS in a statement Tuesday.
According to investigators, Gunsten asked his alleged victims for a short-term loan so that he could purchase wine with a plan to resell it to a confirmed buyer.
The investors were promised repayment plus interest within a short timeframe.
“However after failing to receive repayment, the victims later determined the investment opportunity was a scam,” reads the CPS statement.
“Investigators believe the wine was not purchased and resold for profit; instead, the suspect used the funds from new victims to make payments to previous victims, leaving many empty-handed.”
B.C. lawsuit
According to CPS, bank records show that the money provided by the investors was deposited into Gunsten’s personal account “and not used in the way described to the victims.”
Gunsten is the former vice-president of Dream Wines, an Alberta company that sells wine to businesses in B.C. and Alberta through liquor distribution agencies.
He worked for the company for 10 years until he was fired in 2021 for “moonlighting” by making wine deals on the side.
In 2022, Gunsten and Dream Wines were sued by wine collector Moez Kassam, who lost $85,000 after making a deal with Gunsten to purchase 138 bottles of wine that he never received.
Gunsten bankrupt
Kassam’s bid to have the company held liable failed after the judge ruled Dream Wines was not involved in the contract between the wine collector and Gunsten “in his personal capacity.”
“Dream Wines has provided evidence which establishes that its customary business did not include selling wine directly to individuals,” wrote Justice Andrew Mayer in his decision.
“Dream Wines acted, in effect, as a broker between wine producers and purchasers and only sold wine through liquor distribution authorities in Alberta and British Columbia.”
Gunsten did not file a statement of defence and did not attend the June 2022 hearing. The judge noted he was bankrupt.
“Counsel for the parties before me advise that Mr. Gunsten is now bankrupt and that any proceedings against him are effectively stayed,” wrote Mayer.
Mayer ruled that Dream Wines was not vicariously liable for Gunsten’s off-the-books deal with Kassam and granted the company’s application to dismiss the action.
Gunsten makes his first court appearance in Calgary next month.