A mother and son in Lethbridge, Alta., have each pled guilty to seven counts of fraud in connection with a Ponzi scheme involving a ticket reselling business, RCMP say.

Police say that seven victims were duped into investing more than $1.3 million in a purported business buying and selling tickets to popular events, such as concerts or sporting events. However, police say that the money went to repay earlier investors, or was diverted for personal gain.

Anthony Pittarelli, 45, and his mother, Marisa Pittarelli, 66, pled guilty to seven counts of fraud on Dec. 10 in Lethbridge court. They are scheduled to be sentenced on Apr. 20, 2015.

“Too many people fall victim to these schemes every year,” says Inspector Gord Sereda, officer in charge of RCMP Integrated Market Enforcement Team (IMET) and Financial Integrity. “This investigation is one of several investment fraud investigations brought to court by IMET and Financial Integrity in recent years. Recent investment fraud and Ponzi scheme cases we’ve investigated that have gone to court have affected hundreds of investors who lost many millions of dollars. We hope that through awareness, prevention, investigation and disruption, IMET and Financial Integrity can help reduce the number of people whose financial futures are put in serious jeopardy by falling victim to these schemes.”

The Pittarellis, along with other individuals, and several companies, operating as Front Row Tickets, were originally cease traded by the Alberta Securities Commission (ASC) back in 2007. In 2010, an ASC panel found that they participated in an illegal distribution.

ASC orders $385,000 in sanctions connected to Front Row Tickets securities

As a result, Anthony Pittarelli was banned for eight years, ordered to pay an administrative penalty of $70,000 and $20,000 towards the costs of the investigation. Marisa Pittarelli was banned for five years and hit with an administrative penalty of $25,000, and $10,000 in costs. In that proceeding, the ASC did not allege that the scheme was a fraud.