Former Calgary Dentist Sentenced to Three Years for Major Insurance Fraud
A former Calgary dentist has been handed a three-year federal prison sentence for orchestrating a sophisticated insurance fraud scheme that netted her nearly $700,000 over more than a decade. Alena Smadych, the Russian-born owner of All About Family Dental, was sentenced by Justice Gord Wong in Calgary Court of Justice after pleading guilty to multiple fraud charges.
Details of the Fraudulent Scheme
Smadych's criminal activities involved submitting false claims to five different insurance providers for dental treatments that were never actually performed on patients. The fraud initially involved two companies and approximately $126,000, but expanded to include three additional victims, bringing the total fraudulent amount to $684,348.10.
What makes this case particularly notable is the duration and persistence of the fraud. Justice Wong noted that Smadych continued her illegal billing practices even after Sun Life Financial initiated an investigation into her activities in 2021. The fraudulent scheme spanned approximately ten years, demonstrating a sustained pattern of criminal behavior rather than an isolated incident.
Court Proceedings and Sentencing Rationale
During sentencing arguments, Crown prosecutor Greg Whiteside successfully argued for the three-year penitentiary term, while defence counsel Alain Hepner sought a community-based conditional sentence. Hepner pointed to several mitigating factors, including Smadych's guilty plea and her full restitution payments to all five defrauded insurance companies.
However, Justice Wong found that these mitigating factors were outweighed by significant concerns about Smadych's lack of genuine remorse. The judge noted that presentence reports contained numerous comments from Smadych suggesting she blamed others for her criminal conduct rather than accepting full responsibility.
"I don't see the guilty plea as an expression of remorse... but rather an acceptance that the game was over," Justice Wong stated in his sentencing remarks.
Financial Aspects and Restitution
The financial dimensions of this case reveal a complex picture. While Smadych made full restitution to the insurance companies, Justice Wong noted this occurred only after her assets were frozen through a civil lawsuit initiated by Sun Life. The court heard that Smadych paid Sun Life an additional $500,000 beyond the fraud amount as part of this civil action.
Further complicating the financial narrative was evidence that Smadych sold her dental clinic for $3.5 million after being charged. This substantial sale price raised questions about her motivations, given that she operated a profitable business while simultaneously engaging in fraudulent activities.
Defence Arguments and Judicial Response
Defence counsel presented character reference letters suggesting Smadych was motivated by a desire to help patients who couldn't afford dental care. Similar claims appeared in court-ordered reports. However, Justice Wong rejected this justification, stating plainly that "the only explanation for her crime is pure greed."
The judge emphasized that making restitution after being caught "basically makes the offender break even" and doesn't adequately address the seriousness of the offense or the breach of trust involved in defrauding insurance providers.
Broader Implications for Professional Conduct
This case serves as a stark reminder of the serious consequences facing healthcare professionals who engage in insurance fraud. The three-year federal sentence represents a significant penalty that reflects both the substantial financial loss and the extended duration of the fraudulent activities.
The sentencing also highlights how courts weigh various factors in fraud cases, including the amount stolen, duration of the scheme, the offender's level of remorse, and whether restitution was made voluntarily or under legal compulsion. In this instance, the combination of a decade-long fraud, lack of genuine remorse, and restitution only made under legal pressure resulted in a substantial custodial sentence.
