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Satnam Kaur Reyat, wife of a prime suspect in the most violent terrorist act in Canadian history, was sentenced yesterday to one year of house arrest for defrauding the B.C. government of more than $100,000.

Ms. Reyat, 47, was also ordered to undertake 100 hours of community service and required to repay the B.C. government $10,000.

Although it's one of the biggest fraud cases in provincial history, Provincial Court Judge William Stewart said yesterday that he will not impose a maximum sentence or require any jail time.

A loyal wife and dedicated mother, Ms. Reyat was "manipulated by others and by events beyond her control," the judge said, adding that he would not speculate on their motives.

He also said that he did not doubt the humiliation she felt as a result of the charge was far more than anything he could say about her behaviour being unacceptable.

Her husband, Inderjit Singh Reyat, has been identified by the RCMP as a suspect in the explosion of an Air India flight from Canada to England in 1985. The plane crashed into the Atlantic off the coast of Ireland on June 23, 1985, killing 329 people. Despite the most costly and longest police investigation in Canadian history, no one has been arrested.

Mr. Reyat is currently in the ninth year of a 10-year sentence for manslaughter, convicted for the role he played in an explosion at Japan's Narita airport that killed two baggage handlers. A bomb was in luggage en route from Canada to India. The explosion occurred about one hour before the Air India explosion.

Ms. Reyat was convicted of failing to report about $109,000 in income over seven years while receiving an additional $109,000 in welfare payments.

Judge Stewart said he decided, for several reasons, that Ms. Reyat did not deserve a tough penalty.

Except for the welfare fraud, she led "a law-abiding life" and was a credit to her family, he said. She raised four children in the absence of her husband for more than 10 years and the four children are a credit to her and her community.

"It is clear to me Ms. Reyat is a supportive and very loving mother who in turn is much loved," he said. "She stood by her husband, providing what comfort and love she could while he was in prison."

The house arrest requires her to be at home from 7 p.m to 6 a.m., but she can leave for religious services, for work and to attend to educational functions at her children's schools.

She was also allowed to leave the house for conjugal visits with her husband, who is in a federal prison outside Vancouver. Ms. Reyat left the courtroom without commenting to the news media.

Mr. Reyat faced the manslaughter charges in December, 1989. Although Ms. Reyat was not always in the courtroom, she and the children sat through some of the proceedings.

Mr. Reyat did not testify at the trial. He was convicted and sentenced in June, 1991.

The troubles over welfare payments date from the time of Mr. Reyat's conviction.

Ms. Reyat applied for welfare on Aug. 6, 1991, and continued to receive payments until May, 31, 1998. After she was charged, she pleaded guilty to defrauding the welfare system of more than $100,000.

She has never spoken publicly about the incident. Her husband's lawyer has said the police gave Mr. Reyat the impression that something would be done about the fraud charges against his wife if he provided information to the police about the Air India bombing.

The court was told Ms. Reyat claimed to be destitute and did not tell welfare officials she was receiving money from prominent Sikh community member Ripudaman Singh Malik.

Crown prosecutor Mark Levitz said Mr. Malik gave money to Ms. Reyat from his personal bank account and through his company, Papillon Eastern Imports Ltd. Additional funds were paid through Satnam Trust, a Sikh charity which Mr. Malik headed, and through a Khalsa school account.

Her lawyer Kuldip Singh Chaggar told the court that while on welfare she had offered her services at a day care run out of the Khalsa School in Surrey for extra cash.

A year later, police found cheques paid to Ms. Reyat and other family members among the records of the Satnam Education Society. A society member told police Ms. Reyat was paid $1,100 monthly for her work at the preschool. Also, police discovered that Ms. Reyat applied for a credit card in 1995, stating she was earning $1,300 a month as a part time teacher at a daycare.

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