The Canada Revenue Agency (CRA) announced Sept. 15 that James Harvey Cameron, a former resident of Calgary, has been sentenced to 11 years in jail and fined $550,892 after defrauding investors of more than $2.5 million through a deceptive investment scheme.
The judge also ordered Cameron to pay restitution of $1,831,700 to his victims. If he fails to pay his fine within six months, he will have to serve four more years in jail for default.
Fraudulent RRSP scheme
“From 2002-2006, Cameron operated a fraudulent RRSP scheme which promised a 2 per cent monthly return to individual investors. The scheme raised just under $8 million, but only paid out a total of $882,000 to investors. Cameron misappropriated the funds to support his luxurious lifestyle, including buying property, cars, a horse, and a $75,000 cruise in the Bahamas. He also transferred funds offshore to Barbados,” stated the CRA announcement.
Convicted of tax evasion
A CRA investigation proved that Cameron diverted $3.9 million of the investors' funds for his own use and failed to report this as income on his tax returns, evading $1,132,882 in taxes.
Cameron was convicted of tax evasion under the Income Tax Act and fraud under the Criminal Code. Sentencing took place at the Court of Queen's Bench in Calgary.