Watch above: The former bookkeeper for Whitecap Dakota First Nation has been sentenced to five years in prison for fraud. Joel Senick tells us how Hugo Gallegos bilked the reserve out of almost six million dollars.
SASKATOON – Hugo Gallegos will spend five years in a federal prison and pay a restitution order after pleading guilty to stealing roughly $5.8 million from the Whitecap Dakota First Nation. The sentence was handed down in front of a full courtroom Wednesday in Saskatoon.
Gallegos, a former accountant with the First Nation, stole the funds between January 2009 and July 2013. In court it was detailed that he wrote roughly 1,700 cheques to himself as part of the scam.
Whitecap Chief Darcy Bear went to RCMP in September 2013 with allegations that Gallegos had defrauded the First Nation. Gallegos left to his native El Salvador days later and was arrested when he returned back to Canada.
READ MORE: Man pleads guilty to defrauding millions from Sask. First Nation
“To all of a sudden to find out that you’ve been robbed, we were just shocked,” said Bear outside of court Wednesday.
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“He stole money from our community that rightfully belonged to us,” said Nancy Linklater, a Whitecap Dakota band member.
Crown prosecutor Robin Ritter detailed Gallegos’ lavish lifestyle during the duration of the theft. Ritter said the former accountant bought designer clothes, was a heavy tipper and took frequent vacations. At one point, Ritter detailed a shopping spree where Gallegos spent $700 on socks alone.
“I think Mr. Gallegos was living a lifestyle that I can best describe as obscene,” said Ritter, outside of court Wednesday after the sentencing.
“His excessive spending, living the life of a high roller basically.”
Gallegos began working for the First Nation in 2007 and made roughly $70,000 a year according to the Crown, who described him as a “mid-level accountant.” He previously emigrated from El Salvador and studied at the University of Saskatchewan.
Both the Crown and defence agreed on the sentence and presented a joint submission on Wednesday. However defence lawyer Chris Lavier submitted that Gallegos worked in an office that was filled with corruption and he was taught how to run the cheque scam, in order to provide context into why his client took the actions he did.
Lavier also stated that Gallegos, who is in a same-sex relationship, was verbally discriminated against at his office.
“I’d never seen any discrimination at all, he was openly accepted,” said Bear.
“Those are false allegations.”
In his decision, Justice Richard Danyliuk said Gallegos was free to make his own decisions in life and agreed with the joint sentencing submission.
“It’s been a long process and he did want to have it concluded today,” said Lavier, speaking for Gallegos, after the proceedings.
Gallegos briefly spoke in court, saying he was “so sorry” for his actions and that he now will “face it and go forward.”
“He shared what I think appeared as very sincere apologies to the community of the band,” said Lavier.
Whitecap Dakota members who spoke publically Wednesday said they did not buy the sincerity of Gallegos’ apology and we’re instead looking forward to the future.
“We’re recovering and we believe that we will recover fully. Whitecap Dakota First Nation is a strong nation, we’re proud and we have good leadership,” said Linklater.
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