Canmore accountant sentenced to 5½ years in prison for fraud, ordered to pay back $1.6M
James Russell Neilson was found guilty in July of fraud and money laundering
A former Canmore accountant who duped investors out of millions of dollars has been sentenced to 5½ years in prison and has been ordered to pay back $1.6 million.
James Russell Neilson, 54, was found guilty of fraud and money laundering stemming from illegal activity involving his business, Abaca Solutions, between 2009 and 2014.
If he does not pay back his investors, he could face another five years behind bars.
"Mr. Neilson has shown no effort to put his remorse into actions," said Justice Kristine Eidsvik in delivering her decision.
Many of Neilson's victims lost retirement funds and suffered "tremendous emotional tolls," noted the judge.
On Monday afternoon, Eidsvik sentenced Neilson after hearing arguments last month from prosecutor Steven Johnston, who had proposed a nine-year sentence, and defence lawyer Meryl Friedland, who argued for a three-year prison term.
Beginning in 2009, Neilson began convincing friends, family and former clients — eight people and one company — to invest in his Canmore-based company, Abaca.
He did this by showing fraudulent documents, including financial statements, convincing investors that workers in the Philippines would be used for services in order to save money.
Neilson's business plan involved Abaca providing offshore accounting services to mid-sized accounting firms.
He told his investors they'd be paid through dividends but little, if any, were paid out.
"[Neilson] was successful until he was caught," said Eidsvik.
The judge also commented on Neilson's sophistication in the "levels of deceit and fraud" he used to run his scam.
At the end of the hearing, a sheriff escorted Neilson into custody so he could begin serving his sentence.