Lawyers argue whether woman involved in $300K fraud should be jailed

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How Kathy Brown will spend the next phase of her life is now being pondered by a judge.

She pleaded guilty to defrauding a Regina property management company of over $5,000 between October 2014 and February 2017.

But the amount was well over $5,000, according to Crown prosecutor Dana Brule. Wednesday, he told a judge that bank records confirmed Brown was sent a total of $332,146.10 by renters, none of which she was entitled to.

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And none of the money has been returned to Nicor Community Management Inc., now known as West Oak Investments, where Brown worked as a manager at the relevant time, according to the prosecutor.

Brule summarized the facts of that offence in Regina’s Court of King’s Bench, during a hearing where lawyers argued over a fit sentence for the 62-year-old.

The prosecutor went on to say bank records also showed Brown had withdrawn some $300,000, half of which was taken out at casinos in Moose Jaw and Regina.

“Cash withdrawals significantly exceeded Ms. Brown’s annual income,” Brule told Associate Chief Justice Michael Tochor.

When the company found out what had happened, Brown was fired. And then she was charged. But her law-breaking didn’t stop there, according to Brule.

While her fraud matters were still before the court, she got a job at a Regina Canadian Tire. From that business, sometime between June 2, 2019 and July 2, 2019, she stole over $5,000, according to the charge to which she also pleaded guilty.

Brule said video surveillance showed Brown opening a safe on June 18 and its believed that’s when she swiped $6,809.35 meant to be deposited to a bank.

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The question for Tochor now is whether or not Brown should serve time in custody for her crimes and if so, for how long.

The Crown suggested she should serve three years in a federal prison.

However, defence lawyer Lucas Richards suggested she should be given a conditional sentence of two years less a day, followed by a period of probation. This would allow Brown to serve her sentence in the community, so long as she follows the conditions imposed by the court.

Should the judge decide Brown will serve a custodial sentence of less than two years, she would serve in a provincial jail.

A large part of Wednesday’s proceedings were devoted to exploring Brown’s health issues and the question of whether a provincial women’s jail in Prince Albert would be able to accommodate her health needs.

A doctor testified that the issues relate to a weight-loss surgery Brown underwent and subsequent reported complications, requiring access to her medical team, medication and considerations around diet and sleeping position.

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The acting nurse manager from the women’s jail also testified. She acknowledged that the facility was short-staffed, but she effectively stated that the specialized health needs of inmates can be accommodated and staff does its best to do so in a timely manner.

Richards characterized this as “extremely optimistic” and suggested the facility could not properly manage his client.

Brule took the view that while Brown’s actual health requirements were not completely clear, nothing heard from the witnesses would suggest she could not be accommodated in jail.

The lawyers spoke about additional factors of Brown’s case they felt Tochor should consider when deciding a sentence as well as past court decisions they felt should guide the judge.

Three victim impact statements were tendered, two of which came from representatives of the property management company and the other from the owner and operator of Canadian Tire.

Each spoke of damage caused by Brown’s actions, not only to the respective businesses but also to the people who put their trust in her.

“Ms. Brown is not an irredeemable person,” Richards submitted, telling the judge he believes his client is not a “cold financial predator.”

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Addictions “plagued” Brown’s parents, the lawyer said, noting she was married as a teen to an alcoholic, abusive husband. She “effectively raised” a disabled child, but turned to gambling after the painful loss of this child, Richards said. However, he described Brown as being close with her grandchildren, who provide her motivation to “stay out of trouble.”

Brown herself offered a lengthy, tearful apology directed at the court and the victims.

“I allowed my personal challenges to cloud my judgment,” she said.

“I understand that my actions have consequences, not only for myself but for people I’ve hurt.”

Tochor plans to deliver a decision on sentence in January, at which time further submissions regarding constitutionality may be required.

bharder@postmedia.com

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