WATCH: Two Calgary men, believed to be the biggest financial scam in Canadian history, have been given stiff jail sentences. The scheme they set up led over two thousand people from all over the world to invest millions in fraudulent companies – with a devastating impact. Reid Feist reports.
CALGARY – A judge has sentenced two men to 12 years in prison for one of the largest Ponzi schemes in Canadian history.
Gary Sorenson, 71, and Milowe Brost, 61, were found guilty of fraud and theft in February for an elaborate scheme in which investors were promised unrealistic returns.
The judge did not mince any words and said the motivation behind their actions was pure greed.
“There was really no legitimate business purpose behind this,” said Crown prosecutor Brian Holtby. “Everything was a sham virtually from Day 1.”
Sorenson and Brost could be eligible for parole in about two years, because their crimes were not violent.
It doesn’t sit well with their victims.
“(The pair) should be happy (with the sentence) because when they get out, should they get out earlier, they’re still young enough to enjoy the money they hid somewhere,” said victim Genie Vollmer.
“Lucky son of a b–ch,” added her husband, victim Helmut Vollmer.
It’s unknown exactly how much money was invested or how much remains.
WATCH: Milowe Brost and Gary Sorenson were each handed a 12 year sentence for stealing nearly 2 hundred million dollars in a historic fraud case. Global’s Tracy Nagai reports.
“I don’t feel so much anger, as they look like hollow empty people,” said victim Carol Knopp.
The complicated case began in 1999 after investors were promised inflated returns from a number of mining & mineral companies.
Ponzi schemes involve taking funds from new investors and using them to pay old ones.
Over a decade, the pair stole about $200 million dollars from 2,400 investors, while living lavish lifestyles with mansions, ranches and expensive cars.
Many people lost their life savings.
“Yeah, it’s nice to have it over,” said Knopp, but questioned whether that is really true. It’s unclear if either of the men will appeal the decision.
The trial took five months and early 600 victims submitted impact statements for the sentencing.
A total of 850 victims submitted applications to try and get some of their money back, but now that will have to be decided in civil court.
The Crown was asking the judge to sentence both men to 14 years in prison — the maximum sentence allowed.
“Hopefully 12-year sentence will deter other people,” said Holtby. “At least for a long period of time, Sorenson and Brost will be away from society and won’t be able to victimize other people.”
Brost will serve his time in Bowden, where he will be close to his family.
Sorenson is being sent to B.C.
With files from The Canadian Press.
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