Okanagan tax advisors convicted of fraud

KELOWNA – When you try and steal millions from the government, chances are you’re going to get caught. Donna Marie Stancer and Deanna Lynn Lavalley have been convicted of six fraud related charges after filing nearly $192-million in false expenses for themselves and 224 clients of their now closed Vernon tax preparation company, DeMara Consulting.

The claims resulted in $9.9-million worth of refunds, although the Canada Revenue Agency only paid out around $52,000.

In March of 2012 CRA investigators raided the downtown Vernon office, looking for evidence of tax evasion. Stancer and Lavalley were subsequently charged criminally. Their three-week trial wrapped up Wednesday in Kelowna and it took the jury a mere four and a half hours to find both women guilty on all counts.

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The women marketed their tax evasion scheme to clients, claiming they knew how make the tax man take less of their money. They called it ‘The Remedy’ – turns out it was anything but.

Stancer and Lavalley used clients personal receipts, bills, statements and credit card expenses and illegally filed them for tax returns. The tax cheat cost some of those clients dearly.

The clients are now dealing with tax return interest penalties and some even facing gross negligence penalties.
“As a result of those debts, I believe some have declared bankruptcy,” says prosecutor Jessica Patterson. “We are hoping to gather some information from the individuals who have had some very serious consequences for their personal finances as a result of the actions of these individuals.”

The prosecution is looking to bring those testimonials forward to help determine what sentence Stancer and Lavalley will receive. A sentencing date is expected to be set August 17.