A fraudulent kickback scheme by the former business manager of a Bracebridge car dealership has resulted in a nine-month sentence, to be served in the community.

At the Ontario Court of Justice in Bracebridge last week, Kenneth Randall, 37, was also ordered to pay restitution of $49,628.27 to his former employer.

On Jan. 15, 2008, Randall, who before the investigation had been an employee of Greavette Chevrolet Pontiac Buick Cadillac from April 1999, pleaded guilty to a single charge of defrauding of a sum of money in excess of $5,000 between Aug. 4, 2004 and Dec. 31, 2006. He was originally charged in April 2007 with 40 counts of fraud and 40 counts of uttering forged documents. The multiple charges were rolled together into one charge.

“The Greavette family is happy to have this behind us, now that justice has been served and that everybody can move on with their lives,” said Tim Greavette, the company’s dealer principal, on May 1. “Hopefully the public will realize that we had to do our corporate responsibility to report these things. The public was not the victim; the dealership was.”

Reading from a prepared statement at the sentencing, assistant Crown attorney Chris Ponesse said Randall would have another employee with signing privileges co-sign cheques payable to customers. He would then deposit the cheques in one of three accounts.

Court heard that on Nov. 10, 2006, he approached the company comptroller to sign a $2,000 cheque made out to a customer, saying the amount had been incorporated into a deal. She referred it to co-owner Tim Greavette who issued the cheque, but asked the comptroller to look into the matter. Discrepancies in the company books were discovered and Greavette management contacted the Ontario Provincial Police.

Defence counsel Francesca Yaskiel told the court Randall had a small horse farm and during the period of 2003 to 2004 he wanted to leave the car business to devote all of his time to horses.

“He felt pressured not to leave,” she said. His employers then loaned him $300,000 to buy a horse farm on Fraserburg Road, now known as Maple Lane Equestrian Centre. That amount was repaid in November 2007.

Yaskiel presented the court with case law supporting a conditional sentence for her client and argued the farm is an important community service. She said Randall has been running a special needs program as well as numerous other equestrian programs for children and raised $15,000 for breast cancer research.

Letters from members of the community stating the actions of the accused were out of character were presented to the court.

“The charge certainly had impact on this family business,” said Yaskiel, pointing out that each time the story of the criminal charges ran in the press, Randall’s children were picked on and he lost customers. He had to sell part of the farm to his parents to keep the business going, she said. “When he was charged in April 2007, he immediately lost 12 of 40 boarders. In January 2008 when he pleaded guilty, he lost more boarders and experienced a decrease in students.”

“This farm is Ken Randall,” she said. “Without him there is no farm.”

Yaskiel argued it is more beneficial for him to provide services for the community than to go to jail and have the farm fail.

The Crown argued that straight jail time is the appropriate sentence for the offence.

“Although there is one count of fraud, it was made up of 40 steps over two years,” said Ponesse. “Many crimes are committed by those who are not intelligent or are extremely impulsive. This is not the case here. He gets $300,000 from his employer as a loan. He is shaking hands on one side and stealing on the other. He steals almost $50,000 from a good friend and employer.”

He pointed out that Randall’s crime was not committed out of necessity.

“He had a good job, but he wanted more,” said Ponesse.

Randall did not come forward and admit his crime, the Crown pointed out.

“If Greavette did not find out about it, it can be argued he would be continuing it today,” he said.

Enforcing the stipulations of a conditional sentence would be almost impossible, he maintained.

“He is self-employed. Anything he does can be related to his employment,” said Ponesse. “If an individual can’t be trusted by his friend and employer, how can he be trusted to abide by a conditional sentence?”

Yaskiel countered the accused was not motivated by greed.

“It was stupidity,” she said. “If a deal couldn’t be made without something being thrown in, it shouldn’t have been made.”

Describing the fraud as a “premeditated and calculated breach of trust,” Justice John Evans said he was satisfied the accused posed no real risk to the community.

“Contrary to popular belief, a conditional sentence is punitive,” he said. “The conditions serve to separate the accused from a normal life in society.”

Justice Evans sentenced Randall to nine months with the stipulation he remain at his Fraserburg Road address at all times except for medical or dental appointments and unless he obtains the permission of his supervisor. He is prohibited from using alcohol and non-prescription drugs; is to report to his supervisor regularly as required; is to attend court when required; is to permit entry of police officers into his home so they can confirm he is abiding by his conditions; and must keep the peace and be of good behaviour.