Prison time for fraud
Frank Harrison Dew gets federal prison sentence for role in defrauding clients
A financial planner who was involved in a scheme that defrauded clients of more than $2.9 million was sentenced Wednesday to 54 months in prison.
Frank Harrison Dew, 50, appeared before Judge John Douglas in provincial court in Charlottetown for sentencing after previously pleading guilty to 26 counts of fraud over $5,000.
That 54-month sentence came after a joint recommendation from the Crown and defence in what Douglas said was one of the highest frauds in P.E.I.’s history. Before sentencing Dew, Douglas said the emotional impact had a more serious effect on the victims than any money lost.
“It’s the breach of trust and the emotional aspect of being taken advantage of like this,” he said.
Along with Dew, a second person has been charged for his alleged involvement in the fraud, but has yet to enter a plea.
Dew was a financial planner and adviser working out of Morton Dew in Charlottetown.
Through his affiliation with London Life, Dew was able to sell that company’s products. The fraud started in 2011 and involved Dew taking steps to collect commissions on life insurance policies.
In July 2015, a lawyer for P.E.I.’s Consumer, Corporate and Financial Services division approached Charlottetown police about complaints he received from clients.
London Life internal investigators were also conducting their own investigation at that time.
In total, clients were defrauded of $2,911,076.64. The court heard London Life compensated most victims in full for the money lost.
As he made his sentencing submissions, Crown attorney Jeff MacDonald called it a major fraud with far-reaching implications.
“People were concerned that they were going to lose everything,” he said. MacDonald also said there was no indication Dew was struggling to get by, but no inference could be drawn other than he was trying to support a lifestyle he couldn’t afford. Dew filed for bankruptcy in 2015.
Before hearing his sentence, Dew didn’t address the court, but his lawyer Brandon Forbes said his client accepted full responsibility and apologized to the people impacted. Along with the prison time, Douglas issued a restitution order for $2,911,076.64 that will allow London Life to try to recover the money through the civil courts.
Dew’s bankruptcy doesn’t affect that order.
David H. Cudmore, who was also a financial planner with Morton Dew, is facing 26 counts of theft over $5,000 and 26 counts of fraud.
His matters were adjourned Wednesday until Aug. 3.