Two people charged following an investigation into a local business fraud that totalled more than one million dollars.

Two adult males are charged following an investigation into a local business fraud that totalled more than one million dollars.

In August 2023, a local business reported to police they had been the victim of large theft/fraud. The Regina Police Service Financial Crimes Unit launched an investigation and following more than two years of detailed work, two suspects have been charged – one of them a former employee of the business.

Investigators determined that between 2021 and 2023 the former employee had sent numerous unauthorized payments to himself, as well as the second suspect. It was also determined he used company funds to make payments on a personal automobile loan, rent and to pay off credit cards. The former employee had overseen the company books and accounting duties.

As a result of this investigation, 53 year-old Hugo GALLEGOS is charged with:

Fraud Over $5,000 [CC 380(1)(A);

Laundering Proceeds of Crime [CC 462.31]; and

Theft Over $5,000 [CC334(A)].

GALLEGOS was arrested in Calgary and made his first appearance in Regina Provincial Court on Tuesday, March 10, 2026 at 9:30 a.m.

Seventy-two year-old Dennis MEDERNACH of Saskatoon is charged with:

Fraud Over $5,000 [CC 380(1)(A);

Laundering Proceeds of Crime [CC 462.31]; and

Possession of Property Obtained by Crime Over $5,000 [CC 355(A)].

MEDERNACH will make his first appearance on these charges in Regina Provincial Court on March 26, 2026 at 9:30 a.m.

March is Fraud Awareness Month.

In 2025, the Regina Police Service received 1,081 reports of fraud including identity theft. This is a 33% increase over 2024. Losses reported to RPS in 2025 totalled $11,973,000. This does not include one single investigation with a $10 million loss due to fraud.

The Regina Police Service reminds the public and business community to remain vigilant against fraud attempts and to take steps to protect their financial information:

Check and balances: Regularly check account balances and transaction records.

Ensure regular oversight: Have more than one person looking at account activity and transactions

Always verify the legitimacy of requests for payment or personal information whether they come though email, social media or via telephone call.

Report suspected fraud immediately to police at 306-777-6500 and/or the Canadian Anti-Fraud Centre.

More information on the latest scams/frauds and how you can protect yourself from becoming a victim can be found here: https://antifraudcentre-centreantifraude.ca/index-eng.htm