Madam Speaker, it is a pleasure to rise in the House this afternoon to speak on a very important piece of legislation, the subject of Bill C-52, An Act to amend the Criminal Code (sentencing for fraud).
The bill would target the fraudsters who have recently been the focus of so many stories in our local papers and discussions at local coffee shops around the country.
Let me speak a little bit about what fraud looks like today and why this is a problem that truly deserves our attention.
Some of today's criminals are so sophisticated and imaginative that anyone could fall victim to their schemes. The variety of fraudulent schemes is mind-boggling. These are organized crime gangs that forge lawyers' documents and real estate title documents, and fraudulently sell or mortgage properties that do not belong to them. There are reported incidents literally of houses being sold out from under homeowners or homeowners returning from absences to find strangers living in their houses. It is hard to believe.
There are still the old-fashioned telemarketing scams of various sorts. People are called out of the blue and told they have won a contest or a prize, offered a desirable item to purchase or asked to make a charitable donation to a good cause.
We all have a responsibility to do our due diligence, but often it is hard for Canadians to distinguish legitimate businesses and charities from those which are scams. The result is that the Canadians and foreigners continue to be defrauded out of millions. Familiar to so many of us are the securities frauds, the Ponzi schemes as they are often known as, accounting frauds which specifically overstate the value of a stock, and other complex schemes designed to trick investors into making investments they would not otherwise make if they knew what was really going on. In these cases, as we know, the losses are just staggering.
These securities frauds have also had the horrible effect of diminishing the confidence Canadians have in the capital markets, in Canadian companies, and in the regulatory authorities that are supposed to ensure that business practices are transparent and accountable. And the list goes on and on.
PhoneBusters, the Canadian Anti-Fraud Call Centre, lists over 20 different types of scams which are currently active. Some are particularly frightening.
In one scam, which PhoneBusters calls the “Hitman Email”, consumers apparently receive emails sent by a supposed hitman who says he has been hired by someone to assassinate the recipient. The sender demands a large sum of money in return for not carrying out the mission.
Of course, many of us receive that mysterious email from the Nigerian prince to send $20,000 and we will be rewarded handsomely.
Other scammers prey on people's affection for animals. We all love animals. A photo of a dog is advertised with a caption saying that the owners are moving and that new owners are being sought; whereas just for a small fee, if someone sends it, the animal could be theirs and as soon as the money is sent, there is no animal and the money just seems to disappear.
There is also the home renovation fraud. I represent the constituency of Kelowna—Lake Country where there are many seniors and they are often susceptible to smooth-talking salesmen. There are fraudulent travel advertisements on eBay and other online classified site scams. The list is endless.
Fraudsters could be such productive members of our society if only they used their creativity in law-abiding ways. Instead, they take advantage of innocent people for their own gain.
In my own riding of Kelowna—Lake Country, last month Gloria Lozinski told CTV Canada AM that her sister committed suicide when she realized she lost her life savings, about $300,000, in the Ponzi scheme based out of Alberta. Lozinski said her sister, Edna Coulic, called her to tell her what had happened. “She said she lost everything,” Lozinski explained. “I asked her to elaborate and she said she [just] got conned. Lozinski said Coulic was convinced that she was set to get a big return and that the people involved did everything to convince her that was the case. “They had her believe she had to get a safety deposit box”, Lozinski said. When she realized there was not going to be a return, Coulic contacted the people involved several times, pleading with them to return her money, said her sister. “Edna became Edna no more,” her sister said. Her demeanour had changed. She became anti-social and depressed. Shortly after, she took her life.
This is the kind of devastation that white-collar crime has on the lives of real people, people in my riding and families across the country. After decades of indifference, Canadians are now waking up to a world in which there is a scam around every corner. No one is immune.
These are true crimes which cause true suffering, and it is time that criminal justice began to take fraud seriously again.
This bill would improve the Criminal Code sentencing provisions for fraud to ensure that sentences imposed on offenders adequately reflect the harm they cause. For frauds which have crossed a certain monetary threshold, that is to say that they have a value of $1 million or more, there would be a minimum sentence of two years imposed. Of course, if the fraud was larger than that, as so many are, or if there were other aggravating factors at play, the sentence should be well above two years.
Speaking of aggravating factors, Bill C-52 would also add additional factors to the list in the Criminal Code for fraud offences. The bill would make clear that if the fraud had a particular significant impact on victims because of their financial situation, their health or any other factor, that should aggravate the sentence. Likewise, the more sophisticated or complex the fraud is, the longer it lasted, the higher the sentence should be.
If the offenders failed to comply with application regulations, such as those which require them to have a licence to sell securities or if they concealed or destroyed the records which would show where the money went, these factors would also increase the sentence.
Bill C-52 also seeks to help mitigate future frauds. The prevention element is found in the new prohibition order which can form part of an offender's sentence. When ordered by a judge, the offender could be prohibited from having authority over another person's money, real property or valuable securities in any employment or voluntary capacity.
This is very important, the fact that justice needs to be seen to be done. There has to be truth in sentencing. This means that convicted fraudsters can be prevented from deceiving others into handing over money again. Failure to abide by this prohibition would itself be an offence.
The bill would also help to improve the responsiveness of the criminal process for victims of fraud. It would require the sentencing court to consider if restitution should be ordered, and it would permit the court to receive a community impact statement in cases where a community, in addition to the individuals, has suffered from the fraud.
This is a very important addition, the fact of a community impact statement. Some people may not have been personally defrauded, but it has had a holistic impact on the seniors population or a condominium complex or strata or a group of investors.
I encourage all Canadians to visit the PhoneBusters website to better inform themselves of the scams that are swirling around their mailboxes and telephone answering machines. There is also excellent information on the RCMP website and the websites of local police forces. Consumer agencies also have lots of useful information.
We have awakened in this country to the world of fraud that has previously gone unseen. Education is our first line of defence. The more Canadians know, the better they will be able to protect themselves beginning with the first tenet, if the offer seems too good to be true, then it probably is.
I am confident the measures in this bill will help send a strong message to the fraudsters out there that their time is up. They are doing a cost-benefit analysis and saying that it is not too bad, they can take a risk because the reward is greater. Not anymore.
I am pleased that this bill can act as a springboard for discussion and raising awareness about fraud more generally. I am hopeful and encouraged by the members who have spoken here today. I encourage all hon. members to support this bill and to help ensure it is passed into law as quickly as possible.