Leslie Sand's sentence for fraudulently applying for and using government COVID support programs has his sentence extended, but fines reduced.--SUPPLIED PHOTO
@MedicineHatNews
A southeast Alberta man convicted of bilking Canadian COVID support programs of nearly $800,000 for a business that existed in name only will have 42 months added to an existing sentence, but also receive a $166,000 discount on potential financial penalties.
That number represents the amount of income tax the Canada Revenue Agency determined that Leslie Sand would owe but did not claim when he transferred pandemic support program funds to buy himself vehicles and pay online gambling debts.
On Tuesday in Court of Justice at Medicine Hat, his defence attorney said the mandatory fine for tax evasion – equal to the amount evaded – should be applied in full, but the amount of restitution to other government departments should be reduced by the same amount, and argued his client be given a long timeline to repay the total amount.
“It would amount to a windfall for the Canadian government of $166,000,” said defence attorney Justin Dean, who said funds fraudulently obtained are gone and not being used by his client to generate income or benefit criminally.
“It’s not a windfall, it’s a criminal fine,” said Crown prosecutor Tyler Lord, who said taxpayer money was fraudulently obtained and used to buy personal vehicles and pay online gambling debts.
“The offence of fraud is deliberate, preplanned and (crime carried out in a) careful manner over time strictly for profit.”
Justice Ted Fisher chose the defence’s suggested lower amount, but agreed with Lord’s request for five years to pay once free from incarceration.
He noted it’s unlikely the man will save up hundreds of thousands of dollars so soon after release.
“We may see what the appeals court says,” he remarked after fining Sand a total of $643,428.30, with five years to pay on the charge of fraud over $5,000. That comprises $798,709 less the tax fine, which is mandatory.
“The understanding is that you come before the court after five years and show some honest effort to pay … I don’t think anyone is going to put you back in jail as long as you’re coming some effort,” said Fisher.
The defendant said his life is changed after ascribing to Alcoholics Anonymous programs, and will make every effort to pay the fine over time.
Sand is currently serving a three-year sentence after pleading guilty in 2023 to possessing a restricted firearm, a small amount of stolen property and obtaining credit under false pretences.
“I’m now two years clean and sober from methamphetamines and alcohol, and that wouldn’t have happened without (prison),” said Sand, who appeared in court after arriving from the Drumheller Institution.
“I’m bound to make amends and pay all debts … in this case while doing the time, I also want the court to know that I’ll make every single action possible to pay this back once I’m released back in the community with a fresh head and new attitude.”
The man’s father spoke in his favour saying that Sand had turned his life around in prison, but also blamed the federal government for lax vetting of grants and letting the total rise so high before investigating.
Charges against the man’s wife were withdrawn.
Court heard in an agreed statement of facts that Sand, 44, made 57 applications between April 2020 and August 2022 to access federal government employment, rental, business and other pandemic programs under his company, Flyte Deck. A total of 52 were accepted.
Lord told court that Flyte Deck was created in October 2018 with Sand as the sole shareholder and director. Its main line of business was described as drone flights and 3D printing, but prosecutors say it “never performed any legitimate business activity and had no income.”
Medicine Hat police opened a file in the case after a tip from a confidential informant in 2022, and in a joint investigation with the Canada Revenue Agency and RCMP executed a search warrant at the couple’s home in Brooks.
The investigation determined that Flyte Deck applied and received rental support but paid no rent. Applications included addresses for storage locker units, a hotel room in Medicine Hat, several rental properties and a second home owned by the couple in Redcliff,
For employment supports, 42 non-existent employees listed on applications were infants, deceased persons or fictitious, but “were never employed by Flyte Deck or filed a T4 with the CRA,” according to prosecutors.
Financial records showed that Sand transferred $603,376 to himself from company funds, and another amount to his spouse.
Money was spent money on a new Ram pickup truck, holiday camper and motorcycle, as well as $48,000 spent at online gambling sites.
