James Macleod’s great-grandson convicted of defrauding investors

Colonel’s namesake argued ineptitude and a drinking problem were to blame

The great-grandson of colonel James Macleod, whose name was bestowed on one of the city’s busiest thoroughfares, is blazing his own trail — possibly to jail.

Crown prosecutor Steven Johnston said on Wednesday he will seek a period of incarceration for James (Jay) Farquharson Macleod after he was convicted of fraud in a Calgary courtroom.

“I find that Mr. Macleod’s conduct was dishonest,” Court of Queen’s Bench Judge Corina Dario said in finding Macleod guilty.

“Mr. Macleod did have the requisite intent to commit fraud.”

Johnston suggested the total put at risk by Macleod over a period of more than two years from 2009 to 2011 was in excess of $1.68 million, and more than $1 million in principal payments were either unrecovered, lost or stolen.

Dario agreed Macleod dishonestly took cash from investors in and around High River without providing the returns promised. She dismissed his claim a combination of dyslexia, boozing and business ineptitude led to the losses.

In her written reasons, the judge said Macleod became involved in the community in High River, participating in the Elks Lodge and Rotary Club, and attending regular coffee breaks or breakfasts with local businessmen.

“He subsequently hosted daily afternoon socials in his office, and suggested his office was the busiest bar in town,” Dario said.

“During these social events, Mr. Macleod stated he would talk about his investments, such as short-term mortgages, and his ability to earn high returns on these investments.”

Macleod claimed he got drunk at these meetings and said his dyslexia, poor eyesight and bad business acumen contributed to an inability to intentionally defraud anyone.

“Mr. Macleod tried to defend his actions by blaming his learning disability, drinking issues and general ineptitude as a business person,” the judge wrote.

Those things all combined to be “an impediment to his ability to run the business properly,” she said. “He also testified that he was drunk every day by 4 p.m. and the whole period of over two years was a fog to him.”

But Dario found Macleod was careless with the investments he took in: “His statements that he believed every day that he would find a path to achieve the necessary returns and find a way out of his mounting financial debt was at best wishful thinking, and certainly reckless with respect to the likelihood of the prohibited consequences.”

Dario will hear sentencing submissions on Oct. 30 from Johnston and defence lawyer Mark Canofari on a suitable punishment for the namesake of the man for whom Macleod Trail and Fort Macleod are named.