by BETTER FARMING STAFF
For years, he flew high on a pigeon breeding business that he claimed changed farmers’ lives for the better and brought millions into his company. On Wednesday, Waterloo Regional Police and the RCMP brought Arlan Galbraith to earth with one charge of fraud over $5,000 and four counts under the Bankruptcy Act.
The charges follow a lengthy, two-year investigation by both police agencies of the former, self-anointed pigeon king and his Waterloo-based business, Pigeon King International.
The fraud charge relates to allegations that Galbraith, 62, defrauded individuals in Canada and the United States of more than $1 million between 2004 and the company’s collapse in June, 2008. The charges have not been proven in court.
The PKI breeding scheme offered pigeon breeding pairs for as much as $500 and bought back offspring for up to $50 each. Police estimate about 1,000 people invested a total of $20 million in the scheme. The two authorities began their joint investigation shortly after the PKI bankruptcy, acting on allegations the operation was a Ponzi scheme.
Ponzi schemes depend on a continuing flow of money from new participants to pay off earlier investors. Such schemes are illegal under the Criminal Code, according to a January 2009 report from the Office of Superintendent of Bankruptcy.
Staff Sgt. Dale Roe, with the Waterloo Regional Police Service’s fraud squad, says the decision was made to proceed with one count of fraud because of the number of investors involved. “Not all of those people (investors) were victims but quite a proportion of them were,” he says.
Galbraith turned himself in at the service’s detachment in Kitchener. He was held for a bail hearing that took place yesterday and was subsequently released, Roe says. His next court date is Jan. 25, 2011.
Roe does not know how Galbraith, a resident of Cochrane, Ontario, got to the station.
Earlier this year, Galbraith skipped his personal bankruptcy creditors’ meeting that was held in Kitchener, claiming that it was too expensive to attend.
By 2007, Galbraith had recruited hundreds of breeders in the United States and Canada and claimed that he was multiplying the birds that would eventually be used for meat processing and he was planning on building a squab processing plant.
But others, including former PKI employees as well as experts in pigeon racing and squab production challenged Galbraith’s claims noting the birds were not suitable for racing, showing or meat production. By May 2008 four U.S. states took steps to prevent the company from operating within their boundaries, including regulatory actions.
Unable to meet his financial commitments, Galbraith handed the business to a bankruptcy trustee in June 2008.
Creditors forced Galbraith into personal bankruptcy in 2009.
Police say in a news release issued this morning that no further charges are expected.
For more on this story, read the January 2011 issue of Better Farming. BF
Comments
Finally a decision to charge him with fraud has been made. Makes my Holiday Season a little merrier knowing that that the Canadian Authorities did not drop this investigation.
Darlene Thayer
USA
Coalition Against PKI and Arlan Galbraith
We are appreciating the fact that they Canadian Authorities did not drop the investigation, but this sure doesn't sound like enough. One charge of fraud?
Comment modified by editors. This case is before the courts.
Finally!! Now how long will before the trial starts?
At least he will finally face his accusers.
A challenge needs to be sent to the farm press to do more real ard question asking stories on " are farmleaders and ministers of agriculture failing farmers need for good saftey net programs and WHY". Only then will seeds of improvement come to the light of day.
Farmers need stories of prevention, exposure under freedom of information,after the fact stories of farm problems with pain and suffering although useful only helps a continuation of no positive solutions.
It is very interesting how the spin off affect of economic problems of Ontario farmers helps employee and make work for so many professional and staff people from news,farm orgs, OMAFRA. farm succession,legal, etc.
We need a News Year resolution of change
Dave Thornton
CrimeBustersNow
Some have uttered the likes of "...anyone who believed that pigeon breeding was going to become a commercial livelihood deserved to get fleeced."
Really???
Comment modified by editors: the issue is before the courts.
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