Fraud is a game with little downside risk

Make-believe jail time for CDN criminal fraud.GetoutofjailfreeDetective Fred Kerr makes some excellent points in this Toronto Star article, Views from behind a fraud detective’s desk.

The sentences we’re getting in Canada are truly an embarrassment, because they’re so low.

A few years ago I had a $7.5 million investment fraud in Vaughan, a Ponzi scheme. He was targeting teachers … 35 people lost $7.5 million. Some people mortgaged their homes to invest with him. Some lost their life savings. He was sentenced to 4 1/2 years in jail, but realistically he was out on the street after just 13 months.

Q: What can be done to keep criminals behind bars longer?

A: The federal government recently introduced legislation to change that, so white-collar criminals will spend more time in jail. It’s long overdue …

Low sentences and conditional sentences served at home aren’t enough. We call it “make-believe jail,” because people are sitting at home and it’s hard to enforce. … There’s no deterrent there.

Q: What signal does that send?

A: In Canada we see a lot of people re-offending. That’s common. We re-arrest them many times and then they’re back on the street.

If you’re thinking of buying a franchise, talk to an experienced copper. They know how next-to-impossible criminal fraud is to prove and how expensive the civil justice system is.

This is how I saw the story on as it relates to my experiences in franchising.

2 Responses to Fraud is a game with little downside risk

  1. Carol Cross says:

    “Fraud is a game with little downside risk” The government had to throw the book at Madoff because of the failure of the SEC to see what was right in front of their noses for many years — and still not explained to the American people.

    Franchise fraud appears to have been enabled in the US by the subsidy of regulation that permits franchisors and their owners to defraud innocent investors whenever expedient because they know that they have immunity under the Federal Trade Commission Rule against claims of fraud. When has a franchisor ever been found guilty of the nine elements of common law fraud? They know also that if they promise nothing or very little in their contracts that it is almost impossible to find a breach of contract. The constructive fraud of a binding, mean, and unilateral contract wrapped up in a government mandated disclosure document is difficult to disclose to the public.

    The premeditated use of law, process, and procedure and the media to set up franchisee “marks” for the special interests is disgusting and unAmerican but this is the way it is! For every negative about franchising, there are thousands of positive articles planted on the Internet and in the media! Fighting windmills and fraud goes on and on and on!


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