Ex-livestock Brokerage manager gets four years

Not only did a 52-year-old man’s $1.2-million fraud land him a fouryear prison term, it also could mean deportation once he’s released.

Last month, Court of Queen’s Bench Justice Janet Mcmurtry found Gregor Gmerek guilty of fraud and forgery, charges related to offences he was deemed to have committed while general manager of Moosomin-based Prairie Livestock.

This week, Gmerek — a German national with no previous criminal record — returned to Yorkton Court of Queen’s Bench for sentencing.

Crown prosecutor Dana Brule requested a term of 4½ to five years, while defence lawyer Jeff Deagle asked for a sentence in the range of two to three years.

“The Crown took the position that the cattle industry is an industry that has unfortunately been targeted in relation to frauds,” Brule said, speaking outside of court.

Mcmurtry found Gmerek responsible for a sophisticated breach-of-trust fraud that siphoned more than $1.2 million from the company while he was responsible for its accounting between 2008 and 2012.

While some large frauds are committed to support addictions issues, court heard that was not the case here.

“We were of the view that Mr. Gmerek was funding what we referred to as his extravagant life,” Brule said. “He obtained a car, he obtained his house ... He was not living a middle-income type of life. He basically spent the entire $1.2 million.”

Gmerek was fired in December 2012 when the company’s owner became aware of $763,000 in unauthorized payments to Gmerek, court heard. A painstaking dig through company records revealed even more missing money and eventually led to charges.

Court heard Gmerek created false invoices, forged the owner’s name on unauthorized cheques and created false accounts to back up each cheque. He was found to have taken steps to hide the payouts through the falsification, destruction or alteration of accounting records.

Gmerek unsuccessfully claimed the owner authorized the “off-record” payments.

While the Crown suggested the money went toward Gmerek’s lifestyle, Deagle said it isn’t clear what happened to the money, and he questioned the Crown’s characterization of Gmerek’s lifestyle as extravagant.

“I’m not sure it was one of these things where they were living a million-dollar lifestyle,” Deagle said. “They certainly weren’t. There were some luxury items purchased, but not a substantial amount. Where the money went is somewhat hard to say.”

While restitution orders are often ordered in fraud cases, that didn’t happen here as the complainant previously received a civil judgment against Gmerek.

Brule said a victim impact statement filed by the company ’s owner said he’s struggled to deal with the stress that’s resulted, and that it’s caused strain within his family and his business.

Meanwhile, Gmerek is dealing with his own family stresses, Deagle said. Gmerek came to Canada 24 years ago through a German/ Canadian military program, and subsequently married and had two kids here.

“The impact of the sentence for him and his family is quite severe compared to some other cases, simply because potentially he’s going to be deported,” Deagle said, noting his client is considered a permanent resident. “It has really put a divide into the family.”

I’m not sure it was one of these things where they were living a milliondollar lifestyle. They certainly weren’t.