Local news delivered daily to your email inbox. Subscribe for FREE to the rdnewsNOW newsletter.
(rdnewsNOW/ Ian Gustafson)
Gift card campaign

Central Alberta-based Sweet Home on the Lake under investigation by RCMP

Feb 6, 2025 | 11:38 AM

The RCMP are investigating Sweet Home on the Lake, a local business based out of Sylvan Lake, after receiving a report of alleged fraudulent business practices on Tuesday.

No charges have been laid and no other information was provided to rdnewsNOW, but we will report it as it becomes available.

This comes after Sweet Home on the Lake, which is owned by Cody and Eva Borek, launched a gift card campaign on Sept. 11, 2024; in a Facebook post, the stated the need to raise $400,000 after they had been without a parking lot for six months at their Sylvan Lake location.

They explained in the post that if they were able to raise the money, it would help make Sweet Home on the Lake a part of Sylvan Lake for life.

The promotion was to buy $200 gift cards for $100 apiece and they’d be usable at all of their locations including Sylvan Lake, Stettler, Canmore, Drumheller, and Red Deer.

Less than 24 hours later, in another Facebook post, they revealed their goal of $400,000 was surpassed and then explained that they filed a lawsuit to reopen the parking lot adjacent to their business.

“This gives us the ability to purchase the building and find a solution to the parking lot,” as written in the post. “There are still steps to have the parking lot open again, but we believe this makes it possible.”

In another post in October, the business announced, “the impossible has happened and the most challenging step in the journey of reopening the parking lot is officially complete.”

“We now own the Sweet Home on the Lake Property,” they added. “This building and this location are both a dream, and we’re so excited to secure this location as our foundation for the future.”

However, in December, they gave a business update explaining that after a busy winter of opening another location in Drumheller, they reported the parking lot in Sylvan Lake would be closed. Because of money spent on legal expenses, only their locations in Stettler, Red Deer, and Sylvan Lake would remain open.

The parking lot, which is between Sweet Home on the Lake and Chateau Suites along Lakeshore Drive, is owned by the Chateau Suites condominium corporation. The corporation, which leases the parking lot, declined to comment as legal proceedings are underway.

(rdnewsNOW/Ian Gustafson)

In an interview with Sylvan Lake Chamber of Commerce President Leigh Ostiguy, she said for businesses in Sylvan Lake, parking is an important asset.

“In the town of Sylvan Lake, parking is definitely a premium,” she said. “It’s very highly valued because when you’re in tourist season, parking is very difficult. Any of us that can provide parking for our clients is an asset to the business.”

Customer outrage came this past Monday when Sweet Home on the Lake announced in a Facebook post they’d be closing all locations except for Sylvan Lake, leaving those who bought gift cards with just one outlet to use them.

They explained that they believed when the parking lot was first closed a year ago, it would be a temporary issue but became, “the greatest battle they ever faced.”

They added that their lender, who holds their inventory and fixtures as collateral, would be taking possession, forcing them to close their doors permanently.

“This is not how we wanted this story to end. We wanted to keep building, keep serving, and keep creating a space where people felt at home. But today, we must say goodbye. To our incredible team, we are heartbroken to part ways. Your hard work, passion, and dedication made Sweet Home what it was. You created the magic that people felt when they walked through our doors. You believed in this dream, and we are forever grateful.

“To our community, thank you. Thank you for every visit, every kind word, every piece of support you’ve shown us. You made Sweet Home more than a business-you made it a place that mattered. This isn’t the ending we hoped for, but we will always be proud of what we built together.”

However, on Tuesday morning, they released another statement that the Sylvan Lake location would be closed. They also reported they’d be going into receivership.

“Our life turned upside down. No more time to plan? No more ways to pivot? No more options? That is our reality now. We are heart broken, devastated and we are so extremely sorry,” as written in the post.

“We can’t answer all your questions, we wish we could. But this is now out of our hands. We are in receivership and unable to operate and unaware of what the future looks like. We are so thankful for the meaningful relationships Sweet Home has created in our lives and we will hold on to those memories so dearly. We hope you do as well. It is time for us to say goodbye.

“We know ‘I’m sorry’ doesn’t cover the gravity of what is left in this aftermath, but we truly are. Sweet Home was more then just some business to us and to so many of you, we have heard so many wonderful memories in the last 24 hours. But our favourite was ‘this place was my second home’ to have been able to offer a space like that to customers and team members is an incredible gift.

“We are going to miss it so much.”

The sudden closure leaves many customers with hundreds of dollars of gift cards they cant use.

One customer comments on a post, “To make such a post and not acknowledge in any way, how customers may utilize their gift cards, the ones that were bought to directly support you, takes a level of audacity I didn’t know existed.”

Another commenter said, “I just don’t understand why you would dump everything you have into a legal battle for a single location, when there were other locations that could have served you better without all the hassle?”

There were also commenters who voiced their support for the business.

“I’m so sorry. This is heart breaking. Thanks for all the things you did to support so many charitable events,” as written in the post.

“Sorry for the hardships you have had and are going through. Always sad to see small businesses end,” another added.

rdnewsNOW reached out to the owners of Sweet Home on the Lake in many forms but did not receive a response before time of publishing.

Some local businesses have stepped up to allow customers to use their gift cards at their businesses including White Frog Cafe out of Sylvan Lake.

Spotted Gecko Boutique in Sylvan is also allowing those affected to claim a free $10 gift certificate to their store.

Ally’s Chic Boutique in Central Alberta is offering a 10 per cent discount and Saving Grace Animal Society is honouring the outstanding gift certificates towards an adoption fee for a new pet.

In addition, Handmade by Ali, Twisted Sisters Tattoo, Homegrown from Scratch, MMC Custom Creations, Wolff Wellness, Barely Managing Momma, Typhoon Steam Cleaning, The Valley Cafe, Down Home Photography, Gary Moe, Southside Dodge, Bukwildz, Hazzard County Bar, Love Yoga Grace, and the Stettler SPCA were also all offering ways to utilize gift cards.

For local news delivered daily to your email inbox, subscribe for free to the rdnewsNOW newsletter here. You can also download the rdnewsNOW mobile app in the Google Play and the Apple App Stores.