A Calgary man was handed a five-year sentence Friday after admitting to embezzling $1 million from men who once considered the fraudster as close as family.
Dale Sutherland pleaded guilty to fraud over $5,000 in September, admitting he defrauded two businesses out of $1 million between 2013 and 2017 in order to help support his first-class cruising habit.
Sutherland tried to back out of his plea, but on Friday the judge refused to allow that application, finding the fraudster was not credible or reliable in his claims that he didn’t understand the true jeopardy he was facing after pleading guilty.
Court of King’s Bench Justice Jim Eamon then moved on to hearing sentencing arguments from prosecutor Aaron Rankin, who asked the judge to impose a five-year prison sentence and $1 million in restitution.
‘You’ve dishonoured the accounting profession’
When it was his turn to address the court, Sutherland, who represents himself, told Eamon, “I really don’t know what to say, your honour.”
Sutherland later told the court, “There are no funds available.”
After hearing arguments and victim impact statements, Eamon returned to court late Friday afternoon and handed down Sutherland’s five-year prison sentence.
“People have to have accountants and … they have to be able to get into the books and records of the company,” said Eamon.
“You’ve dishonoured the accounting profession and the bookkeepers of the world as well — it’s unacceptable.”
‘The existence of evil’
Sutherland worked as an accountant and controller for the Kore Group and Kore Onsite, companies run by Brad LaForge and Kent Werner.
Both men wrote victim impact statements, read aloud in court on Friday.
“I was always aware of the existence of evil, however I did not believe it was so close,” wrote LaForge.
The two men met in 1994. Ten years later, LaForge asked Sutherland to join Kore.
“We accepted you as family … you betrayed us all,” said Kore.
13 cruises
LaForge noted that Sutherland was included “in many key moments of our lives.”
Werner also wrote a victim impact statement which was read aloud by prosecutor Aaron Rankin.
“Dale’s crime stole my life savings,” wrote Werner. “And, it was perpetrated for years through disturbing manipulation, deception and betrayal.”
During his plea, court heard that the 68-year-old Sutherland took annual vacations and “was quite open about the fact that he would spend a large part of this time taking first-class cruises via the Princess Cruise Line.”
Sutherland’s own cruise record shows that over the four-year period he was embezzling from the Kore companies, he took 13 cruises, spending 28 weeks on the water.
‘Mr. Big Shot’
According to the agreed statement of facts, over a four-year period, Sutherland was “fraudulently diverting significant additional money to himself from the Kore companies.”
Sutherland stole most of the money by setting up an account that received a biweekly payroll transfer.
The investigation found Sutherland paid himself at least $850,000 through that account.
The judge heard that both company owners took out mortgages against their personal assets during the time Sutherland was defrauding them to keep the companies viable.
“Mr. Big Shot, living high off the hard work and effort of others,” wrote LaForge.
“So generous with our money.”