Former P.E.I. funeral home director gets jail for 66 frauds
The former owner and director of Dawson Funeral Home in Crapaud, who defrauded clients of more than $425,000 for pre-arranged funerals has been sentenced to two years less a day in jail.
The offender, Lowell Oakes, 71, was sentenced on March 13 in P.E.I. Supreme Court by Chief Justice Tracey Clements.
Oakes pleaded guilty on Aug. 10 to the 36 charges of fraud over $5,000 and 30 charges of fraud under $5,000.
At a sentencing hearing, Crown attorney Chris White requested a federal prison sentence of 42 months. Defence lawyer Peter Ghiz requested a conditional sentence, or house arrest, for two years less a day. If jail was going to be imposed, Ghiz also requested an eight-month sentence.
THE FACTS
On Aug. 30, 2021, the RCMP Major Crime Unit received a complaint about possible misappropriation of funds at the funeral home. The complainant said she was having difficulty getting her money back that was deposited for a pre-arranged funeral.
In 2015, the P.E.I. Funeral Professions and Services Board made it a requirement that funeral homes place money received for pre-arranged funerals into a trust account. Oakes was a member of that board. The board announced that rolling inspections would be taking place in August 2021 to ensure that funeral homes were complying with that requirement.
LICENCES REVOKED
Oakes contacted the president of the P.E.I. Funeral Directors and Embalmers Association and disclosed that he used money for pre-arranged funerals for renovations to the business. Oakes also told the inspector on Aug. 19, 2021, that he had been using the funds for the business's general operating cash flow and renovations. On Aug. 21, 2021, Oakes contacted the board president and acknowledged that what he did with the funds was wrong and asked what he could do to "make things right."
Oakes' licence to operate the funeral home was suspended on Aug. 27, 2021. His funeral director licence and funeral home operator's licence were later revoked, and the business closed.
The RCMP charged Oakes with the 66 fraud counts on July 21, 2022, totalling $425,215.60. The frauds occurred from 1999 to July 2021, and many of the victims were Oakes' friends, neighbours and members of the community.
Based on a pre-sentence report, it was noted in court that the funds were used in part to support Oakes' gambling addiction, which involved buying lottery tickets, betting on horse races and spending money at the casino in Charlottetown. Oakes has since undergone counselling for his gambling addiction.
Alcohol was also an issue, but Oakes has been sober for four years. Oakes also had financial issues as a result of owning apartment buildings and a $60,000 investment in a diamond company that turned out to be a scam. It was also noted in the report that Oakes wasn't making much money with funerals.
BREACH OF TRUST
Clements cited several aggravating factors in the offences, such as the breach of trust Oakes had in relation to the victims, the large number of victims, the amount defrauded and the duration of the offences over more than 20 years. The emotional and economic harm the offences had on the victims was also considered at sentencing.
Clements also considered mitigating factors in Oakes' favour. Oakes pleaded guilty to the 66 charges, which saved the court from holding a trial. Oakes also did not have a prior criminal record. Oakes' age and health issues were also factors considered at sentencing.
SENTENCE
In addition to the two-year-less-a-day (or 729-day) jail term, to be served at the Provincial Correctional Centre, Oakes was sentenced to 18 months of probation and 50 hours of community service. The jail sentence breaks down into two years less a day for the 36 fraud over $5,000 charges and 14 months concurrent for the 30 fraud under $5,000 charges.
Oakes was also prohibited for 20 years from seeking, obtaining or continuing any employment or volunteer position that involves authority over the real property, money or valuable security of another person.
As well, even though Oakes was bankrupt and repayment was unlikely, he was ordered to pay restitution to the victims. Clements said that restitution was appropriate since it prevented Oakes from profiting or benefiting from the fraud offences. Restitution would also make Oakes more accountable for the harm he caused, Clements added.
Oakes was not required to write letters of apology to the victims. Clements explained that letters of apology from Oakes could be perceived by the victims as "hollow or artificial."