4 months each of house arrest, curfew and probation sought by Crown
Anderson claims $100 million in development under his reign
Judge reserves sentencing decision
Former SWSDA chief Frank Anderson was to be sentenced today in Yarmouth Provincial Court on eleven charges of fraud and forgery relating to his manipulation of ACOA funding documents.
Shelburne judge Jim Burrill oversaw the hearing.
Last month, Anderson pleaded guilty to one count of uttering forged documents, but the plea arrangement, according to Crown prosecutor Jim Clark, is that, in sentencing, the judge will consider amalgamating the severity of the charges of multiple frauds on the government agency.
While seeking a 12-month custodial sentence including four months house arrest, four months curfew and four months probation, the Crown attorney told the court that Anderson had no personal profit from crime and has no criminal record and and refers to pre-sentence report, which also includes testimonials from Anderson's friends, several of whom were in the courtroom. These included close ally and disgraced former provincial minister Richard Hurlburt, who was seen nodding at the Crown's assertions. Hurlburt's expense scandal conviction was noted by the Crown in its presentation.
The Crown attorney said that there was premeditation in Anderson's acts, that it was not a one time occurrence, but occurred over a period of one year or more.
The Crown told the Court that none of the injured businesses wanted compensation or would file a victim impact statement and there was no request for restitution. The Crown also said that Anderson has done well for himself and his family and maintained respectable employment and lifestyle in the community.
Despite their records of various frauds, both Anderson and Hurlburt enjoy strong community support in Yarmouth.
After the 80-minute Crown spiel, Anderson took the stand as part of the defence presentation, explaining how much he enjoys community work and iterating the lengthy list of his involvements there. He included the board of Trade Centre Ltd, from which he was removed when the legal action ensued. He included this dismissal in his claim against the NS government for defamation. That case has not seen a courtroom as yet.
Anderson told the court that the area saw $100 million in development during his tenure. Anderson and SWDA were more notably the architect of several serious business failures, including a film production centre, blueberry operation and mink farming centre of excellence.
A 10-year legal battle Anderson waged with a Shelburne aquaponics and nutraceutical firm resulted in massive legal bills which were never disclosed to SWSDA board members. A settlement hours before trial resulted in a substantial payment by SWSDA to the defendants in that case.
During that period a blog published proof - later confirmed by a forensic audit - that Anderson had been double-billing for tens of thousands of dollars in illegitimate expenses, plus charging large dinner and bar tabs for he, Richard Hurlburt and others.
He admitted to Justice Burrill that he should not have forged the documents in question, but said he thought a governmnet bail-out was in the works, which would have covered the unpaid invoices.
Due to his "robbing Peter to pay Paul" style of financial management, Anderson was sometimes described as operating a "pyramid scheme".
Later, Anderson told the court he he would "never do the same thing", but then said he thought he was "doing the right thing" in his fraudulent actions.
Andersdon's lawyer says he committed the multiple frauds for "the love of his community", Anderson submitted 29 letters of support and his lawyer recommended to the judge that he get a conditional discharge.
There were eleven fraud-related charges against Anderson tried in tandem, all of them related to forged “Request for Payment” forms submitted to ACOA between February, 2009 and April, 2010. Some of these charges are related to a $360,000 payment claimed – but never made – to Garian Construction of Tusket for work done – but not paid for – on a grade school project in the Tusket area.
Anderson's lawyer is Donald Presse, a criminal defence lawyer with seven years experience as a crown prosecutor. He is a partner in Bedford-based Presse Mason, whose motto is “Justice for the injured”, and whose promotional materials suggest they are a logical choice for those wanting to take the “best steps to take to protect your reputation and freedom.”
Jim Clark is a senior crown counsel with the Nova Scotia Public Prosecution Service, where he has worked in the special prosecution office for more than 20 years. Prior to joining the Public Prosecution Service, he was in private practice in Dartmouth and was a Deputy Judge Advocate in the Canadian Forces.
Until his termination and the dissolution of SWSDA, Frank Anderson served as CEO for almost fifteen years, during which he built an impressive economic enterprise which was described by one observer as a “fiefdom”, where he appeared to hold dominion over municipal leaders and clients and where he seldom tolerated any challenge to his authority.
SWSDA crumbled in financial ruin at the end of Andersoln's tenure, leaving a wake of unpaid bills to local businesses in a bankruptcy totalling more than $2 million.
Soon after being turfed from SWSDA, Anderson formed South West Nova Consulting, specializing in generating ACOA loans and grants for companies in the region. Anderson describes the firm online as a "management consulting firm providing service for private sector companies in Western Nova Scotia to help them grow their enterprises."
Sources tell SCT that more than one of these firms filed for bankruptcy soon after getting the ACOA funding.
Judge Burrill told the courtroom that he was reserving his sentencing decision for November 13.
