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A Regina police investigation into more than $1 million in alleged fraud has led to charges against two men, including one with a history of financial crime in Saskatchewan.
The Regina Police Service (RPS) said a local business reported the suspected fraud in August 2023, triggering an investigation by the force’s Financial Crimes Unit.
After more than two years of work, investigators have announced charges against 53-year-old Hugo Gallegos and 72-year-old Dennis Medernach of Saskatoon in this investigation.
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Police allege that between 2021 and 2023, a former employee responsible for the company’s accounting secretly transferred money from the business.
Investigators said the employee sent numerous unauthorized payments to himself and another man and used company funds to cover personal expenses.
According to police, the money was used to pay rent, credit cards and a personal automobile loan.
Gallegos has been charged with fraud over $5,000, theft over $5,000 and laundering the proceeds of crime. Medernach faces charges of fraud over $5,000, laundering the proceeds of crime and possession of property obtained by crime over $5,000.
Police said Gallegos was arrested in Calgary and made his first appearance in Regina Provincial Court on March 10. Medernach is scheduled to make his first appearance in Regina Provincial Court on March 26.
RPS is continuing to investigate the matter.
Repeat fraud offender
Gallegos was previously sentenced to five years in federal prison after pleading guilty to multiple fraud-related offences connected to the Whitecap Dakota First Nation near Saskatoon.
The court heard in that case that Gallegos, who worked as a senior accountant for the First Nation, wrote roughly 1,700 cheques to himself between 2009 and 2013, ultimately stealing about $5.8 million.
The stolen money funded what prosecutors described as a lavish lifestyle that included expensive clothing, frequent travel and extravagant purchases.
Members of the Whitecap Dakota First Nation said at the time the crime had a deep impact on the community.
“He was stealing our money and living a lifestyle that he didn’t earn,” Whitecap Dakota Chief Darcy Bear said following the sentencing.
Gallegos was ultimately sentenced to five years in federal prison in 2015 after pleading guilty to multiple counts of fraud and theft. The new Regina charges come as police warn that fraud remains a growing problem in the city.
Fraud Awareness Month
Within the release, RPS highlighted that March is Fraud Awareness Month.
In 2025, there were 1,081 instances of fraud, including identity theft, reported to the service – a 33 per cent increase from 2024.
Reported losses totalled $11,973,000 last year, not including one investigation where $10 million was lost due to fraud.
The service has steps for protecting financial information – the first being to regularly check account balances and transaction records. As well, RPS recommended having more than one person look at an account’s activity and transactions.
People should verify the legitimacy of requests for payment or personal information, regardless of whether they’re being asked for it through social media, a phone call or email.
Those who suspect fraud should immediately contact both police at 306-777-6500 and the Canadian Anti-Fraud Centre.
The Centre’s website also has more information on the latest scams and how to protect yourself from becoming a victim.
