Some of the victims of financial advisor Earl Jones call for harsher sentences for white collar crimes during a demonstartion in front of the courthouse Monday, September 28, 2009 in Montreal, Quebec.The Canadian Press/Ryan Remiorz
Victims of white-collar crimes will have greater access to restitution and the perpetrators will face tougher sentences under new legislation that comes into force today.
The federal government introduced the legislation, Bill C-21, last year in the wake of high-profile financial fraud cases such as the Earl Jones and Norbourg affairs in Quebec.
More than 9,000 investors were swindled – many losing their life savings – in a massive scam orchestrated by Vincent Lacroix, the head of Montreal-based Norbourg Asset Management. He pleaded guilty in 2009 and was given 13 years in prison, which was later reduced.
Montreal financial consultant Earl Jones was sentenced to an 11-year term last year for defrauding 158 clients of his – mostly elderly – clients.
"This bill marks a shift in momentum towards balancing the rights of the offender versus the rights of the victims," said Joey Davis, whose mother lost her life savings of $180,000 investing with Mr. Jones.
Jean-Guy Houle, who lost $97,500 in the Norbourg scam, said victims of such crimes often become seriously ill or contemplate suicide so devastating are the consequences.
The new law will "give a voice to the victims," he said at a news conference Tuesday during which federal Justice Minister Rob Nicholson announced the enactment of the legislation.
The stiffer penalties in the law include a mandatory minimum penalty of two years for fraud over $1-million.
The legislation also requires judges to consider imposing a restitution order, in which case the person found guilty of fraud would have to pay his or her victim back.
But Lincoln Caylor, a partner at Bennett Jones LLP in Toronto who practices commercial litigation with a focus on fraud, says the legislation is not enough.
"There are a lot of positive things about it. For example, the fact that it's now mandatory that the sentencing judge and the Crown consider restitution. This could sometimes be overlooked in the past," he said.
It must be kept in mind, though, that it's often too late by the time of sentencing, with the money having long disappeared, he said.
There should be a heightened focus on providing investigators and prosecutors the necessary tools to seize assets before the funds are gone, said Mr. Caylor.
The system for investigating and enforcing white-collar crime is simply overwhelmed, he said.
Even if a thorough investigation is completed, the Crown often lacks the expertise or time or resources to effectively prosecute, said Mr. Caylor.
Bertrand Marotte