Ken Fowler, accused in $27M mortgage fraud, out on bail

A Calgary man deported from Mexico and wanted in Canada for securities fraud is back in the city and out on bail.

Ken Fowler is accused of co-orchestrating the $27-million TIE Mortgage fraud.

A former investor claims many of the alleged victims were retirees who lost their life savings.

Fowler was missing for two years. Then in January, Mexican immigration officials, acting on information from the Alberta Securities Commission, arrested Fowler in Ensenada and deported him to Canada.

He was in custody until Monday, when a provincial court judge granted him bail. Fowler's trial is set for May 2017.

• $27M investment fraud preyed on retirees, alleged victim says
• Alberta seniors duped out of millions each year by investment fraud

Under his bail conditions, he can't travel, directly trade in securities, engage in investor relations activities, or act as a director of any issuer.

Money raised through TIE Mortgage was supposed to be invested in short-term loans, according to a financial inspector appointed by a Court of Queen's Bench judge.

But court documents claim Fowler was using some of the money to finance a lavish lifestyle. The claims have not yet been proven in court.

Douglas Schneider served time

The other Calgary man wanted in connection to the scheme has already served his sentence.

In 2014, Douglas Schneider was deported from California.

Last year, he pleaded guilty to making misleading statements, trading in securities without registration, and trading in distributions of securities without a prospectus.

Schneider was sentenced to one year in jail, but with credit given for time served in the United States, he was only required to serve an additional 60 days in Canada, which he did on weekends, according to a spokeswoman from the Alberta Securities Commission.

ASC issued a cease-trading order for the company in November 2012.

MORE CRIME NEWS: Calgary men charged after 864 investors lose $33M in Crowsnest Pass development