Fraud scheme lands third suspect in court
Judge orders second impoverished man to pay his share in fraud scheme targeting street people
Daniel Campbell
Northern News Services
Published Wednesday, April 23 2014
SOMBA K'E/YELLOWKNIFE
For the second time in as many weeks, an impoverished Yellowknifer has been sentenced to pay back thousands of dollars to Money Mart, after two strangers had him cash a fraudulent cheque for them.
Two weeks ago, a 36-year-old homeless man was forced to pay back $6,800 to Yellowknife's Money Mart, as part of his sentence for using a forged cheque there. Two strangers plucked the man off the street, tricking him into cashing a cheque in his name for them. They paid him only $50 for the job when he gave them the cash.
But now the courts have changed their tune after a similar case arose, recognizing a 43-year-old unemployed man with mental illness as the "weakest link" in the same scheme targeting vulnerable Yellowknifers.
The same two men made off with $9,257 after getting their mark to cash a fake $7,500 cheque at Money Mart and deposit another fake $5,839 cheque at CIBC in Yellowknife Oct. 10 and 11.
The man was paid $200 by the strangers for cashing the first cheque in his name. He then withdrew $1,499 from an account the men set up at CIBC with the second cheque. He used the money to "party" and buy booze for his friends, the courts heard.
The man showed up at the Yellowknife RCMP detachment a week later to confess to his role, after he heard police were investigating the fake cheques.
Marc Coulombe, Yellowknife RCMP spokesperson, said police are looking into the matter further.
There is a third person allegedly roped into this scheme, Coulombe confirmed. He made an appearance in territorial court on Tuesday, with a charge of using a forged document.
In total, the main perpetrators in this scheme have made at least $16,000 using vulnerable Yellowknifers to cash fake cheques.
Judge Christine Gagnon sentenced the man in the second case to two years probation on Thursday, during which he'll need to pay back only a portion of the money gleaned by the two men from the scheme.
Gagnon ordered the man to repay the money he stole for himself - $1,699 - as part of his two-year probation, meaning he could be charged with a crime if he fails to make the payments after two years. She further ordered him to pay $2,633 to Money Mart and $2,945 to CIBC as a "stand alone" restitution order, meaning the institutions can only make a civil claim against the man if he doesn't pay.
She waived victims of crime surcharges in the case.
This differs from the sentence the courts imposed April 8, where the homeless man was forced to fork over the entire $6,800 defrauded from Money Mart as part of his probation, and make payments of $300 per month.
Judge Garth Malakoe also imposed two victim of crime surcharges and a $150 fine for a missed court appearance, pushing the homeless man's debt to more than $7,000.
During their submissions at the second offender's sentencing, both Crown and defence lawyers painted the accused as a victim of this scheme, rather than the one solely responsible for the fraud.
"It's clear (the man) was targeted by these individuals," said Crown prosecutor Mark Feldthusen.
"This should reduce his moral blameworthiness."
Charles Davison, the man's defence attorney, called it a "cold and calculating" scheme, enacted by people "far more sophisticated" than his client.
The man, who is unemployed and a diagnosed paranoid schizophrenic, "was taken advantage of," Davison said.
Gagnon agreed, saying it bothers her that the man could be tasked to reimburse the entire amount.
"Right now we have the weakest link," Gagnon said.
"The principal perpetrators have not been identified."
Feldthusen initially asked the court to impose a three-to-four-month jail term, as well as restitution for the full amount taken from Money Mart and CIBC.
"It's easy to see these as large corporations, but the economic cost is real and they are victims," Feldthusen said, echoing comments made by Crown prosecutor Cecilia Bastedo, who prosecuted the first offender.
But Davison noted the imbalance between the institutions and his client. He lashed out at CIBC, which unlike Yellowknife's Money Mart, has these kinds of losses covered by their insurance.
Both institutions asked the courts to force the accused to pay back the full amounts they were defrauded.
"It's interesting CIBC has chosen not to make an insurance claim," Davison said.
"So someone who is virtually penniless and living in poverty will have to pay thousands to one of the major financial institutions."
Feldthusen told the court police have not identified any suspects in the case. RCMP tracked activity on the man's account to Enterprise and finally Kamloops, B.C., before it was deactivated, he said.
