REGINA — Two men are facing charges after a Regina Police Service investigation into a long-running fraud that police say cost a local business more than $1 million.
The business first reported concerns in August 2023, prompting the RPS Financial Unit to launch an extensive investigation. After more than two years of work, investigators identified a former employee and a second man as suspects.
According to police, the former employee, who handled the company’s books and accounting, allegedly sent numerous unauthorized payments to himself and to the second suspect between 2021 and 2023. Investigators also say he used company funds to cover personal expenses, including payments on a vehicle loan, rent and credit cards.
Hugo Gallegos, 53, has been charged with fraud over $5,000, laundering proceeds of crime and theft over $5,000. He was arrested in Calgary and appeared in Regina Provincial Court on March 10.
Dennis Medernach, 72, of Saskatoon, is also charged with fraud over $5,000, laundering proceeds of crime and possession of property obtained by crime over $5,000. He is scheduled to make his first appearance in Regina court on March 26.
Police say the investigation is ongoing.
March is Fraud Awareness Month
In 2025, the Regina Police Service received 1,081 reports of fraud, including identity theft. This is a 33 per cent 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 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 through email, social media or via telephone call.
- Report suspected fraud immediately to police at 306-777-6500 and/or the Canadian Anti-Fraud Centre.
