Updated: Mon Oct. 19 2009 12:12:14

ctvcalgary.ca

The two men accused of creating a Ponzi scheme, that allegedly bilked investors around the world of millions of dollars, were represented by their lawyers in a Calgary court on Monday.

Gary Allen Sorenson, 66, and Milowe Brost, 55, are both charged with fraud over $5,000 and theft over $5,000 relating to their alleged role in the pyramid style scheme.

Dozens of investors showed up at the Calgary Courts Centre to see the accused but were disappointed when neither man made an appearance.

"I guess it shows how much guts they have, they don't want to face reality, don't want to face the people who are involved," said investor Doreen Brown, "goes to show what kind of people they really are."

Police allege as many as 3,000 investors in North American and abroad may have been swindled out of their investments between 1999 and December 2008.

Investigators say the amount of money lost could be close to $400 million.

Sorenson and Brost are accused of creating a business, Syndicated Gold Depository S.A., based on the gold commodity.

The company allegedly agreed to loan money to Merendon Mining Corporation in return for a high rate of return.

The high rate of return and promises of tax advantages was then used to entice investors into putting their money in off shore shell companies like Asset Trax Inc., Quatro Communications Corp., Rapid Express Corporation, Strategic Metals Corp., and Merendon Mining (Nevada) Inc.

Nominees were allegedly put in place by Brost and Sorenson to run the shell companies which were then marketed by Brost's companies, Capital Alternatives Inc. and the Institute for Financial Learning (IFFL).

The arrests came as a result of an extensive investigation by the RCMP's Integrated Market Enforcement Team (IMET) over the last 3 and half years.

Brost was arrested on September 14 and Sorenson was taken into custody when he stepped off a plane at the Calgary International Airport on September 29, 2009.

It is believed that Gary Sorenson had been living in Honduras before his arrest.

Both men are currently out on bail and if convicted could face sentences of up to 14 years.

Anyone who believes they have been victimized in this scheme is asked to call 403-292-8827 to speak with investigators.