Judge sentences man to seven years for Ponzi scheme
A judge found a St. Albert man was motivated by “greed” when he sentenced him to seven years in prison Wednesday for a Ponzi scheme that bilked investors of about $6 million.
Wade Closson, 47, earlier pleaded guilty to 53 counts of fraud over $5,000, related to an $11-million mortgage investment scheme in which he lost millions from dozens of investors — many of whom were his friends and family.
“It’s one thing to be taken advantage of by a stranger, but many people felt this was a trusted friend,” Court of Queen’s Bench Justice Paul Belzil said as he sentenced Closson, calling the man’s behaviour “appalling” and a breach of trust.
He described Closson’s actions as “predatory,” noting the fraud spanned six years, and that Closson didn’t stop until the scheme completely collapsed despite knowing it was failing.
Several of Closson’s victims attended the sentencing Wednesday as court heard victim impact statements that detailed the financial devastation many experienced when the scheme crumbled and they learned their money had been lost.
Crown prosecutors read out a number of statements on behalf of victims, detailing ruined retirement plans, wiped out savings, forced sales of homes and an inability to pay for children’s educations.
“The effect of the crime will take decades for some of the victims to recover from. Some victims will never recover,” prosecutor Megan Rosborough told court Wednesday.
She and fellow prosecutor Damian Rogers had argued for a sentence of six to eight years.
But Closson’s lawyer, Nicole Sissons, said Closson hadn’t acted out of “pure greed,” and that he had “blind hope” he could salvage some of the money he was losing. She argued for a four-year sentence.
Closson apologized to the court. “I would ask your forgiveness and say that I am truly sorry,” he said.
According to an agreed statement of facts, Closson solicited investments from people for his two companies: Optam Holdings Inc. and Infinivest Mortgage Investment Corp. He told investors their money was going into the mortgage lending business, and that they would make money on their returns.
When the businesses began to lose money, Closson used new investors’ money to pay back earlier investors. He used investors’ funds to pay for personal expenses, such as his vehicle, credit cards and golf membership, and paid himself over $1.18 million. He also funnelled money into various ventures, such as restaurants and a Nicaraguan lumber mill.
In 2013, the companies, Closson and his wife all declared bankruptcy.
Belzil also issued a restitution order Wednesday for the full $6 million, and made orders that prohibit Closson from working in securities and finance in the future, and ordered Closson to pay a victim fine surcharge of $200 per victim, which amounted to $10,600.