He was the self-proclaimed “architect” of a failed RV park on scenic Lake Koocanusa, B.C., located about four hours southwest of Calgary, near the Canada-U.S. border.
But on Friday, 64-year-old Craig McMorran appeared in front of a packed Calgary courtroom to learn his fate after being found guilty in September 2024 of scamming 17 victims out of an estimated $2 million.
Court of Kings Bench Justice Nicholas Devlin sentenced McMorran to five years in prison for fraud, one year consecutive for theft and a six-month concurrent sentence for money laundering.
Taking into consideration time already spent in custody, Justice Devlin said the combined sentence equates to five and a half years behind bars.
McMorran was also ordered to pay approximately $870,000 in restitution to his victims who thought their money was going towards the development of their dream, lakeside vacation home in B.C.
Instead, the lots remained largely undeveloped, and police became involved after investors contacted them with concerns about the the infrequent communication with the developer.
Craig McMorran described himself as the architect behind Sweetwater Resort on Lake Koocanusa, B.C., but on Friday a Calgary judge sent him to prison for defrauding investors out of an estimated $2 million.
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Police said, between 2014 and 2017, the investors gave McMorran tens of thousands of dollars — in some cases up to $100,000 — towards the purchase of a vacation home at McMorran’s Sweetwater Resort.
But investigators determined the sales contracts were invalid — including some that investors had signed thinking they were purchasing a boat slip on Lake Koocanusa — but the boat slips were submerged and located on Crown land, so could not legally be sold.
During sentencing, Court of Kings Bench Justice Nicholas Devlin said Craig McMorran was well aware the leases he was selling on Lake Koocanusa were invalid.
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Justice Devlin said McMorran was well aware the leases he was selling were invalid.
He said the victims were robbed of a dream and stated “the total damage here is of a very great magnitude.”
McMorran, who was wearing a blue jumpsuit in court, listened and nodded his head as victim impact statements were read, detailing how he had stolen the investors money and dreams.
McMorran also made a submission to the court speaking directly to the victims, saying, “I take full responsibility for everything that happened. I understand the hurt that you have and I listened to every word.
“My only goal at Sweetwater was to create a resort for you to make memories. I was so concerned and so bitter and I was focused on what happened to me. But I forgot what had happened to you.
“I was the architect of Sweetwater and I lost it.”
Some of McMorran’s victims told investigators they signed contracts to purchase boat slips at Sweetwater Resort, but they learned later that the contracts were invalid because the boat slips were underwater and on crown land, so could not legally be sold.
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His defense lawyer didn’t deny McMorran’s culpability — but described his actions as a “business deal gone bad” rather than a predatory scam.
McMorran asked for forgiveness, saying, “I’m truly ashamed and I’m embarrassed. I’m full of remorse.”
However, the judge also said he was skeptical of McMorran’s remorse.
Next month, McMorran will be back in court facing allegations of defrauding dozens of other victims who thought they were buying lots at an undeveloped RV park located near Sundre, Alta., northwest of Calgary.
Police allege, in August 2017, he purchased close to 40 hectares (94.22 acres) of land under the name Clearwater Cottages and began selling 99-year leases to unsuspecting clients at prices ranging from $39,000 to $69,000.
Investigators said that between August 2017 and September 2020, 26 lots were sold to his alleged victims, despite the company not having any development permits and the land not being zoned for recreational use.
In January 2022, Clearwater County issued a permanent injunction against the RV park’s development and ordered all the leaseholders to evacuate their properties within six months.
Investigators allege there were 26 lot owners who were defrauded of a combined loss of $1.5 million.
McMorran has been charged with fraud over $5,000. and will be back in court on June 3.