Calgary fraudster, ‘motivated by greed,’ gets house arrest for ‘sham’ investment scheme

A traditional Chinese medicine expert who helped trick a retired Calgary couple into investing $77,400 into a “sham” company has been sentenced to house arrest.

Quang Sac Hoang, who immigrated to Canada as a young man in 1990, was convicted of theft, possession of proceeds of crime and money laundering in Alberta’s Court of King’s Bench.

The court heard Hoang was acting as an intermediary within a larger fraud scheme.

“On receipt of this money, he immediately transferred it overseas to Singapore and the money was never recovered,” Justice Michele Hollins wrote in her recent sentencing decision.

The impact of Hoang’s actions on Susan and David Andersen “is significant,” said the judge.

“One can only imagine having worked and saved diligently into one’s 70s, only to have that financial comfort taken away. The other arguably aggravating factor — often present in fraud — is that Mr. Hoang made a free and conscious choice motivated by greed. He had a job, had clients and a stable life and yet chose to risk all of that, and become a convicted criminal, for $3,000,” the fee he received for his role in the scam.

But in her decision dated Nov. 27, Hollins noted “mitigating circumstances as well” in this case.

“Mr. Hoang has made a significant effort to repay a good portion of the loss and is facing a restitution order compelling payment of the rest, notwithstanding that he himself did not benefit to that extent. He has a modest but stable lifestyle and is genuinely remorseful,” said the judge.

She handed Hoang a two-year conditional sentence, with the first eight months to be served on house arrest.

“A conditional sentence may be as onerous as, or perhaps even more onerous than, a jail term, particularly in circumstances where the offender is forced to take responsibility for his or her actions and make reparations to both the victim and the community, all the while living in the community under tight controls,” Hollins said, quoting a case that went all the way to the country’s top court.

“While Mr. Hoang’s sentence must address the sentencing objectives of deterrence and denunciation, it must also comport with the principle of restraint (that the punishment be the least severe possible to achieve general sentencing objectives) and the goal of rehabilitation,” she said, noting Hoang has already paid the Andersens back to the tune of $20,000.

“In my view, given his gainful employment, his maturity, his remorse and the meaningful steps already taken to provide restitution to the Andersens, Mr. Hoang is a very good candidate for rehabilitation and a (conditional sentence order) is a legislatively provided tool for precisely these circumstances.”

While Hoang’s lawyer lobbied the court for house arrest, the Crown argued unsuccessfully that Hoang spend between 18 months and two years behind bars.

“After much due diligence,” the Andersens invested $77,400 “with a company they believed was Chiefswood Investment Management headquartered in Toronto,” Hollins said.

“In reality, that company’s name was being used by fraudsters to trick people like the Andersens into transferring money to bank accounts not related to any legitimate business. Instead, the Andersens’ money was received by Mr. Hoang and immediately transferred (although it took two attempts) to a bank account in Singapore. After trial, I found that Mr. Hoang’s company had been created for this purpose and not for any legitimate business purpose.”

Hoang was not the mastermind behind “the brand-spoofing using the Chiefswood name,” said the judge.

“His role in the overall fraud was therefore arguably minimal but still integral to the outcome. Without his agreement to lease business premises and open a corporate bank account to create the false perception of legitimacy, careful investors like the Andersens would not have been fooled.”

Losing their “hard-earned and carefully managed retirement savings has left (the Andersens) financially vulnerable and personally mistrustful,” Hollins said.

While “not formally trained,” Hoang “has worked in traditional Chinese medicine for most of his adult life and continues to do so, earning approximately $50,000 (gross) per year,” said the judge.

“At the time of sentencing, Mr. Hoang presented a payment of $20,000 towards restitution of the Andersens’ losses. He also made a (translated) statement to the court communicating his shame and regret, as well as his promise to try his best to make restitution of the rest of the money lost.”

Hollins gave Hoang three years to pay back the balance of the $77,445, he took from the Andersens.

She also fined him the same amount, promising that if Hoang defaults, he’ll be incarcerated for 18 months.

“Any amounts paid by Mr. Hoang pursuant to the aforementioned restitution order will reduce the fine by a corresponding amount,” said the judge.

A note on the Chiefswood website indicates the private investment outfit “has no interest” in seeking clients and “no intention” of growing the company. “Anyone soliciting clientele under the guise of Chiefswood Investment Management Inc. should be considered fraudulent and investors are strongly advised to terminate correspondence immediately.”

• Ontario man participated in two 'sham' marriages in India 'to dupe Canadian immigration authorities'
• Man jailed for 222 ‘bogus returns’ at N.B. Staples after asking for house arrest to avoid deportation

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.