A British Columbia judge has sentenced a former financial consultant to two years less a day of house arrest for defrauding an extremely vulnerable client of $155,800 and using the money for gambling.
Details of the Fraud
Kenneth David Derksen, a former consultant at Investors Group Financial Services Inc., pleaded guilty to fraud over $5,000 last year. According to a recent decision from B.C. Provincial Court, Derksen sent himself the stolen funds via e-transfers in amounts ranging from $300 to $3,000 between November 2016 and February 2019. The money was taken from the retirement and savings accounts of his client, John Boellaard, who was out of the country and at times hospitalized in Thailand.
Court Proceedings and Sentencing
Judge Jeremy Hermanson noted that Derksen expressed shame, guilt, and regret for his actions. At the time of sentencing, Derksen had not yet told his family about his offending, and he regretted the impact on them. The 59-year-old father of two adult children attributed his actions to a gambling addiction.
"I accept that online gambling was a contributing factor to his offending," Hermanson wrote in his May 1 decision from Courtenay, B.C. "He has lost hundreds of thousands as well as his marriage to gambling. He has received some counselling but to this point, that has been minimal."
Rehabilitation and Restitution
Derksen has banned himself from casinos and deleted his online gaming profiles. He reported not having gambled since the charges came to light. The judge noted that there was no evidence the stolen money was used for a lavish lifestyle, accepting that it went to gambling.
The Crown sought a sentence of 18 months to two years less a day, followed by a year of probation, and an order for Derksen to pay Investors Group $164,164.74, which included the stolen amount plus missed financial gains. Derksen's lawyer recommended a conditional sentence order of 18 to 24 months.
The judge weighed whether Derksen should serve time in prison or under house arrest, ultimately deciding on house arrest with strict terms, emphasizing the need for denunciation, deterrence, and rehabilitation.
