Tories table white collar crime bill
MONTREAL - The Tories have reintroduced the tough-on-crime legislation aimed at white-collar criminals that they first tabled last fall.
A pair of federal ministers went to Montreal to announce the re-tabling Monday of a bill that died on the order paper when the government prorogued Parliament.
In a repeat performance, victims'-rights advocates were again brought out to share a podium as Justice Minister Rob Nicholson and Quebec lieutenant Christian Paradis promised tougher rules for fraudsters.
Those victims' advocates and other experts, however, say Canadians would be better served with an increase in spending on resources and education than with mandatory minimum sentences.
The bill introduces tougher sentences, including a mandatory two years in jail for those who bilk their victims of more than $1 million.
"Fraud can have a devastating impact on the lives of its victims, just as much as if they'd been mugged in an alley," Nicholson said.
The new rules will also give judges leeway in sentencing, particularly when large-scale fraud is committed or aggravating factors are at play such as a victim's age or health.
A wider range of victim-impact statements could, under the new legislation, also be used in court.
The ministers brushed off questions about their own government's role in stalling the legislation by proroguing Parliament; the bill was re-tabled Monday in the Commons, six months after it was initially introduced.
The white-collar legislation is among a number of bills being brought back by the Tories this week and Nicholson said he has a series of announcements planned.
While they lauded the bill as a good first step, victims' representatives were adamant that they want more from the government when it comes to combatting white-collar crime.
Some argued that cases don't get to the courts in the first place, and there were calls for more funding for prosecutors and police to fight complex fraud.
"This is only good if you catch the perpetrators and you can't catch the perpetrators if the RCMP throws up their hands and says, 'We can't investigate this,'" said Janet Watson, who lost $68,000 in an alleged Ponzi scheme involving Mount Real Corp.
"We have to catch the criminals first and then go through with the prosecution."
Mount Real Corp. was shut down in November 2005 by Quebec's securities regulator, and faces more than 700 securities violations. But the police say they don't have the resources to investigate such complicated cases of alleged fraud.
Watson said it's unlikely criminal charges will ever be laid. She compared the Mount Real situation to some well-known cases to illustrate how difficult prosecution would be.
"Norbourg was one man, Earl Jones was one and Mount Real is hugely complicated: 120 associate companies and trying to trace that money ... is virtually impossible," she said.
Other demands include a national securities regulator — a highly controversial idea in Quebec and Alberta — that would have the teeth and resources to properly investigate such financial crimes.
"The trouble with much of the Canadian legislation is the second step is 50 years from now," said Al Rosen, head of Rosen and Associates, a Toronto-based forensic accounting firm.
"I really think it's an insult to Canadians when this type of legislation comes through because it's so meagre and so out of touch with reality."
The head of a group representing victims of Montreal Ponzi schemer Earl Jones said that if the bill passes, the next step will involve putting in place some sort of plan to help victims.
"We'd like to see a restitution or relief program put into place that we proposed to the government where a victim of white-collar crime can go to and seek immediate relief," said Joey Davis.
"We need this because when your money is stolen and your resources are robbed of, who do you to turn to? We think the government should be there but there are no policy or programs in place."
Jones pleaded guilty last February to orchestrating a $50-million fraud and was sentenced to 11 years in jail. He could be released after serving just one-sixth of that sentence, roughly 22 months.
There's a push to change the one-sixth rule, too, Davis said.
But resources remain key and sorely lacking when it comes to investigating fraud, said criminologist Neil Boyd.
Many cases never make it to trial and, if they do, the cases are lengthy and complicated. Fraudsters often have more money at their disposal to pay defence lawyers, further delaying proceedings.
"It's cosmetic, it's not a substantive response," said Boyd, who teaches at Simon Fraser University.
"It's a trivial response to the overall problem, which would be better served by substantial resources, improving regulations, and through better investor education."
White collar crime bill revived
Justice Minister Rob Nicholson was in Montreal on Monday to announce his party's plan to reintroduce its "tough-on-crime" legislation aimed at white-collar criminals that was first tabled last fall in the House of Commons.
Nicholson invited victims' rights advocates to the Monday announcement, which comes six months after the proposed law died on the order paper after Prime Minister Stephen Harper prorogued Parliament last November.
Nicholson, flanked by MP Christian Paradis, promised tougher rules for white-collar fraudsters, including mandatory jail time for perpetrators guilty of fraud above $1 million.
"Fraud can have a devastating impact on the lives of its victims, just as much as if they'd been mugged in an alley," Nicholson said at a news conference at the Guy-Favreau Complex.
Under the proposed legislation, judges could consider aggravating factors such as the victim's age and health when deciding on a sentence.
Other demands include a national securities regulator — a highly controversial idea in Quebec and Alberta — that would have the teeth and resources to properly investigate such financial crimes.
Victims want more prosecution
Victim advocates are welcoming the legislation but insist more resources are needed to increase prosecution.
The major problem with white-collar crime is that cases never make it to court, said Janet Watson, who lost $68,000 in an alleged Ponzi scheme involving Mount Real Corp.
The bill "is only good if you catch the perpetrators, and you can't catch the perpetrators if the RCMP throws up their hands and says 'We can't investigate this,' " Watson said.
Quebec's securities regulator shut down Mount Real Corp. in November 2005 after the company was accused of more than 700 securities violations.
But police said they're short on resources to investigate complicated fraud allegations, and Watson fears criminal charges will never be laid.
Financial fraud victims also need other kinds of assistance, said Joey Davis, a Montreal man representing a group of Earl Jones victims.
"We'd like to see a restitution or relief program put into place that we proposed to the government where a victim of white-collar crime can go to and seek immediate relief," Davis said.
"We need this because when your money is stolen and your resources are robbed of, who do you to turn to? We think the government should be there but there are no policy or programs in place."
Jones pleaded guilty last February to orchestrating a $50-million fraud and was sentenced to 11 years in jail. He could be released after serving just one-sixth of that sentence, roughly 22 months.
Advocates also say there needs to be more emphasis on investor education.
I don't see this bill being very effective at all, or making any good impact on crime, if voted in. All it will do, is impose more mandatory sentences on people who are not dangerous, violent or high risk and who dont need to be in prison. Plus, it is close to impossible to catch white collar criminals in the first place, especially when a whole company is involved. I think the best sentence for a white collar criminal, if prosecuted, would be a massive fine to pay back either through working or a fine option program (community service/volunteer work) and restitution to the victim. This would truly teach them the consequences of their actions, rather than simply using the prison "quick fix."
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