Chestermere Man Faces Fraud Charges in RV Park Lot Scam

A Chestermere man is now in the spotlight as authorities charge him with orchestrating a multi-million-dollar fraud scheme involving the sale of undeveloped RV park lots near Sundre. Craig Douglas McMorran, 64, is accused of misrepresenting the potential of an RV campground project to defraud investors from both Alberta and British Columbia.
In August 2017, McMorran, operating under the company Clearwater Cottages Ltd., purchased approximately 94.22 acres of land southeast of Sundre with plans to develop a state-of-the-art RV campground. Instead of following proper procedures, he began marketing and selling lots under 99-year lease terms to unsuspecting buyers. According to police reports, lot prices ranged from $39,900 to $69,900, while some buyers were enticed by a combined lot and cottage package offered at $169,000. Between August 2017 and September 2020, 26 lots were sold to individuals who believed they were purchasing legitimate, development-ready parcels of land.
Authorities revealed that McMorran never secured the required development permits, yet he pressed ahead with construction. Clearwater County officials issued cease and desist orders to halt the unauthorized building activities, but McMorran allegedly continued work regardless of these warnings. The situation escalated when, in January 2022, a court imposed a permanent injunction on the project, forcing all lot owners to vacate the premises by June 30, 2022.
The fraudulent sales have resulted in a combined loss of approximately $1.5 million for the victims, many of whom reside in Calgary. The Calgary Police Service Economic Crimes Unit launched an investigation after receiving numerous complaints from buyers who began questioning the legitimacy of their transactions. “Finding out you are a victim of fraud can be devastating and have lasting emotional and financial impacts,” said Staff Sgt. Geoff Gawlinski from the economic crimes unit.
This case is not an isolated incident for McMorran. He was previously charged, along with business partner Gus Kalabalikis, in connection with a similar fraud scheme involving RV sites near Lake Koocanusa close to Fernie, B.C. That case, which involved the sale of RV lots between 2014 and 2017, saw Kalabalikis convicted on multiple charges while McMorran’s sentencing was delayed pending further legal proceedings. In the current matter, McMorran faces charges of fraud over $5,000, money laundering, and theft over $5,000. While he was acquitted on one count of fraud in the previous case, he was found guilty of theft and dealing in property as proceeds of crime.
Local authorities continue to urge potential investors to exercise caution when purchasing undeveloped land. Prospective buyers are reminded to verify zoning, permits, and development plans to avoid falling victim to such sophisticated scams. The ongoing investigation underscores the need for heightened consumer awareness and stricter oversight of property development projects.
McMorran is scheduled to appear in court on May 6. As the case unfolds, law enforcement officials remain committed to recovering losses for the victims and ensuring that those responsible are held fully accountable for their actions. Chestermere residents and investors alike are closely watching the proceedings, hoping for a resolution that prevents further exploitation in the real estate market.