Col. Macleod’s descendant jailed for million-dollar fraud in High River

The great grandson of Calgary pioneer Col. James Macleod showed no emotion Monday as a city judge sentenced him to 4 1/2 years in a federal penitentiary.

James Farquharson Macleod was also ordered to pay $1,029,000 restitution to his High River victims, by Court of Queen’s Bench Justice Corina Dario.

But one of those victims expressed doubt he’ll ever see a penny.

Richard Cooper said he was duped out of $10,000 by Macleod.

“I’m highly skeptical of that for sure,” Cooper said outside court.

Cooper said he was pleased to see Dario reject Macleod’s bid for a conditional sentence. “I’m happy with it,” he said. But Cooper doesn’t believe the punishment will stop Macleod from looking to defraud others.

“I would not at all be surprised if he does this again,” he said.

Cooper said it’s been a long process of more than six years to see Macleod finally brought to justice.

Justice Dario said there were multiple aggravating factors which justified a prison term near the five years sought by Crown prosecutor Steven Johnston.

“There was a breach of trust,” the Calgary Court of Queen’s Bench judge said in her written ruling.

“Mr. Macleod relied on his reputation in the community to attract further investment, and he took advantage of individuals in a small, close-knit community, some of whom thought he was their friend.”

She said his lack of a criminal record and letters of support showed his otherwise good character, but that was not surprising.

“Good character is far from a distinguishing factor in embezzlement cases,” she said, quoting from a 2007 Alberta Court of Appeal decision. “That the embezzler is otherwise a solid, hard-working member of the middle classes, is almost always true.”

Macleod operated a mortgage brokerage in High River beginning in 2006.

Sometime later he started a private investment fund business and approached investors he met through local High River clubs.

Macleod convinced people to invest in his private fund which would be used for mortgage or bridge financing and paid out at a rate of 15 per cent.

Dario said from at least Feb. 2009 to June 2011, no money was invested and Macleod provided no proof cash was invested before then.

“This scheme put more than fourteen individuals’ funds at risk, at least ten of whom lost all or part of their investment,” she said. “A number of these individuals were seniors who were retired.”