Victims of disgraced investment adviser Ian Thow got a pleasant surprise yesterday as provincial court Judge Jocelyn Palmer threw out a plea agreement and handed the former Berkshire Investment Group vice-president a nine-year prison sentence for defrauding 20 victims of $8 million.
Thow was also ordered to pay restitution of $3.9 million and submit a DNA sample.
The judge's approval of the Crown's request to submit his DNA visibly upset Thow. He whispered to his lawyer, handed her notes and shifted in his chair while his face and neck grew red.
Crown spokesman Neil MacKenzie said the DNA order was requested because Thow, 48, left the province for the U.S. after the incidents occurred and there was evidence "Thow provided misleading information about his background and identity when he was in the U.S."
The judge noted that Thow gave false names in the U.S. to a roommate and to a woman he was dating, and lied that he had helped create Microsoft and contributed to its Excel spreadsheet program.
"Given the grave harm Mr. Thow caused here and taking into account there is always potential for future offences, the Crown believed it was appropriate he provide a [DNA] sample," said MacKenzie, noting the DNA is absolute proof of his identity.
A group of Thow's victims, watching the proceedings via closed-circuit television at the Victoria courthouse, were upbeat following sentencing, though the mood was tempered with knowledge Thow is unlikely to spend a lot more time behind bars.
Thow was given two years' credit for the year he has spent in custody, meaning his prison sentence is seven years.
According to National Parole Board spokesman Patrick Storey, Thow could be on the streets in as little as 14 months as he could be eligible for accelerated day parole. He would be eligible for full parole in 28 months after having completed a third of his seven-year sentence.
"If there are no previous convictions, especially for violence, and if this is his first federal sentence, he will be eligible for accelerated parole review after having served one-sixth of his sentence," Storey said.
Thow may not qualify for that, given in July 2006 he was ordered to undergo drug and alcohol counselling, domestic-violence counselling and comply with a no-contact order under terms of a plea agreement reached in Seattle.
According to Seattle municipal court documents, the City of Seattle agreed to suspend prosecution of Thow if he complied with the counselling and no-contact conditions, had no criminal violations and owned no weapons for two years. Thow had been charged with assault, interfering with reporting domestic violence and harassment.
"The board looks for the issue of violence and any indication of violence because in order to release him, the law requires there's no reasonable grounds to believe he is likely to commit an offence involving violence," said Storey.
Yesterday's sentence brings to a close a five-year RCMP Integrated Market Enforcement Team investigation that led to Thow being charged with 25 counts of fraud stemming from allegations he bilked clients and friends of more than $32 million.
Thow persuaded his clients to invest in several schemes, including shares in a Jamaican bank and short-term loans for developers. The investments were never made and the Crown characterized Thow's actions as a classic Ponzi scheme.
While the group of Thow's victims didn't know how much time he would be likely to serve behind bars, they were pleased the judge at least went beyond the bounds of the joint submission from Crown and defence attorneys that called for a seven-year sentence.
"That was a surprise, that's good," said Patrick Olson, who lost $100,000 to Thow. "I thought it was going to be seven with two years off for time served."
"I liked that the judge really had his number," added Shirley Garwood, who with sister Helena Kells lost $300,000. "She reprimanded him for not showing any remorse and she said he didn't come back from the U.S. for any other reason than the fact he didn't want to be jailed in the States. I thought, good for you, lady.
"And I'm happy he got the nine years rather than the seven, but you know, we had talked about the day he goes to jail and I thought I would be so euphoric, but now I'm just thinking he'll be [free] in a few months and I'm still broke, all of us are still poor."
In her remarks to the court, Judge Palmer noted Thow expressed "no remorse," after years in which he "exploited" personal relationships with mostly elderly people to strip them of their life savings, homes and even of legitimate investments.
It has yet to be determined where Thow will spend his time in prison.
According to Storey, he will be transferred to the 96-bed Regional Reception and Assessment Centre in Abbotsford where he will be evaluated.
Correctional Services Canada will assess Thow's needs and the risk to the community before placing him in a penitentiary.
It is likely he will be placed at either a low- or medium-security facility.
The RCMP Integrated Market Enforcement Team issued a statement yesterday, saying it is "pleased with the court outcome as financial crime is a serious matter."
"This investigation has been lengthy, and very stressful for the victims. I am glad to see a successful conclusion and wish closure for the victims," said Insp. George Pemberton, officer-in-charge of the RCMP's Integrated Market Enforcement Team in Vancouver.
IMET began investigating Thow in the summer of 2005 based on complaints received from investors and the Berkshire Investment Group.
