Conservative crackdown on white collar crime

Human toll
“It’s an unfortunate reality that white collar crime has taken its toll on individuals and communities across Canada,” said Justice Minister Rob Nicholson who was in Montreal with Minister of State for Small Business and Tourism Maxime Bernier to introduce Bill C-21, the Standing Up For Victims of White Collar Crime Act.

“This legislation stands up for victims of fraud, and makes it easier for them to seek the restitution they deserve,” Nicholson added.
Bill C-21 came about largely in response to white-collar crimes committed by some of the most notorious investment fraudsters seen in Canada in recent years, such as independent Ponzi schemer Earl Jones, and financial scammer Vincent Lacroix who ran Montreal-based Norbourg Asset Management. While Jones is now serving an 11-year sentence for defrauding victims of at least $51 million, Lacroix was paroled last January after serving one-sixth of his sentence for defrauding more than 9,000 victims out of $115 million.

Mandatory minimum
The new law includes a mandatory minimum penalty of at least two years for fraud over $1 million. It also includes tougher sentences by adding aggravating factors that courts can consider. These factors include: if the fraud had a significant impact on the victim, given the victim's particular circumstances, including his/her age, health and financial situation; the offender's failure to comply with applicable licensing rules or professional standards; and the magnitude, complexity, and duration of the fraud and the degree of planning that went into it.
The legislation requires judges to consider imposing a restitution order – meaning someone who is found guilty of fraud would have to pay his or her victims back. It also permits the court to prohibit the offender from taking employment or doing volunteer work involving authority over other people's money. Courts will also be allowed to consider a Community Impact Statement made on a community’s behalf (such as a neighbourhood, a seniors’ centre or a club), describing the harm done to or losses suffered by the community.

Types of fraud
The offence of fraud can include securities-related frauds such as Ponzi schemes and accounting frauds that overstate the value of securities. It also includes mass marketing fraud, mortgage and real estate fraud, and many other deceptive practices.
Additional measures in the new law aim to improve the responsiveness of the justice system to meet the needs of victims of fraud through restitution and community impact statements. These amendments will increase the use of restitution orders in fraud cases by requiring judges to consider restitution from the offender in all cases of fraud involving an identified victim with ascertainable losses.

Ordering restitution
Judges are now also required to provide reasons in cases where a victim has sought restitution but it has not been ordered. The Crown would also be required to advise the court if reasonable steps have been taken to provide victims with an opportunity to indicate whether they are seeking restitution for their losses. This is meant to ensure that sentencing does not proceed without consideration of restitution or without an opportunity for victims to indicate to the Crown that they wish to seek restitution.