Colwood businessman Ralph Bartholomew Kelly was convicted Friday of four counts of fraud and three counts of theft from two Greater Victoria men.
After a four-week trial in B.C. Supreme Court, the 11-member jury deliberated for about three hours before delivering its unanimous verdict.
The verdict means the jury believed Kelly deliberately defrauded Frank Pecorelli and Garrett Campbell of more than $270,000.
He had promised them that if they raised $250,000, he could obtain a $5-million loan from Malaysia, and he would, in turn, give them a loan of $1.5 million which would allow them to buy a local carpet business.
The offences began in December 2008.
Kelly, who represented himself in court, said he did not defraud Pecorelli and Campbell of any money and they should not be believed. He described himself as the fall guy for their wrongdoing.
After Justice Doug Halfyard had thanked the jurors for their work, they filed out of the courtroom without casting a glance in Kelly’s direction.
Following the verdict, prosecutor Ian Hay said: “I’m a great believer in jury trials and, in this case, I think the result was fair. I thought the jurors’ sacrifice was far beyond what would ordinarily be expected of any citizens with the length of time and the difficulty in focusing on the real issues.
“Victims of fraud have a very difficult time.
“Because frauds are very expensive and difficult to investigate, the person who is being defrauded often has trouble obtaining a forum. They are frequently told it’s a civil matter.”
Because they’ve been deceived, victims of fraud often doubt their own judgments, said Hay.
“It’s incredibly embarrassing for them to have to admit that. It takes a certain amount of bravery to complain and to give evidence and to acknowledge that someone has taken advantage of you.”
Kelly’s sentencing hearing is scheduled for 10 a.m. on Tuesday.
Hay is seeking a global prison sentence of two years to 30 months, plus restitution of the money Kelly stole from Pecorelli and Campbell.
When Halfyard asked Kelly what he wanted to do about sentencing, Kelly told the judge he wanted to be called by his first name and would not finish the sentencing if the judge kept calling him Mr. Kelly.
“Ralph wants to finish the sentencing,” Kelly said. “I will appear next time I see you as Ralph.”
Calmly, Halfyard said he would continue to address him as Mr. Kelly.
“I won’t accept that,” Kelly said.
“You have to,” Halfyard replied.
During the trial, both Pecorelli and Campbell testified that they did not understand how the complicated deal worked, but they believed in it and advertised online for investors.
Both have pleaded guilty to offences, which began with these incidents, under the B.C. Securities Act, Hay said.
