Yet One More CRA Employee Embezzler : CRA SOTW
Alan Baggett
Sentencing hearing set for former tax auditor who defrauded federal
government of $226,000
August 06, 2009 By Frances Barrick
A sentencing hearing will be held in November for a former Revenue
Canada tax auditor who defrauded the federal government of more than
$226,000.
Last June, Edgar Borde, 59, of Guelph, pleaded guilty to one count of
fraud involving 229 government cheques totaling $226,735 from 1999 to
2004.
Borde filed a total of 209 false income-tax return forms on behalf of
31 people, resulting in 219 refund payment cheques totaling $193,604
being sent to him, according to an agreed statement of facts filed
earlier with Kitchener Superior Court.
He also requested adjustments to 11 income tax returns on behalf of
four people, resulting in Borde receiving 10 refund cheques totalled
$33,131, the statement said.
Borde was an employee of the Canada Revenue Agency in Kitchener from
February 1997 to March 2002, when he was fired for inappropriate use
of confidential taxpayer information unrelated to this case.
This week, a sentencing hearing was set for Nov. 9 for Borde.
Federal prosecutor Steve Dollar said after court that he is seeking a
penitentiary sentence of three years.
A report on electronic monitoring has been ordered, indicating that
defence lawyer Steve Gehl may be seeking house arrest for his client.
Borde used five different schemes to commit this fraud, the statement
said. He forged the signatures of taxpayers on tax refund cheques he
received.
At the time, Borde worked as an auditor investigating underground
economy tax evaders and people who failed to file their income tax
returns.
One scheme involved 29 taxpayers who had moved out of the country.
Borde changed their addresses, and then claimed additional tax credits
and GST refunds. Cheques totaling $90,172 were sent to Borde at
mailbox outlets in Guelph and Brampton, the statement said.
Borde also changed the address on the income tax accounts of two of
his Guelph neighbours and filed three requests for additional false
RRSP contributions and charitable donations, increasing their tax
returns. This netted him $17,023, the statement said.
He changed the address of another taxpayer and submitted a request for
an additional false RRSP contribution of $17,500, earning him $6,136.
During his work as an auditor, Borde unearthed two people who
chronically failed to file income tax returns. Both earned a lot of
money. Borde fraudulently filed 13 tax returns on their behalf,
containing false information about RRSP deductions, charitable
donations and fictitious business losses. Twenty cheques totaling
$103,432 were sent to a Guelph address set up by Borde, the statement
said.
After Borde left Revenue Canada, he met a man at a computer course.
Borde offered to file the man’s income tax returns in 2000 and 2001,
which he subsequently altered with additional false charitable
donations and business losses. Six cheques totalled $9,970 were cashed
by Borde, the statement said.
The fraud was discovered during a routine internal audit, the
statement said.
Borde was charged in October 2005. Since his whereabouts was unknown,
a warrant for his arrest was issued. On Feb. 14, 2006, Borde arranged
through a lawyer to surrender, but he failed to appear.
Then on March 26, 2007, Borde surrendered to police, and later that
day was released on bail.
This case is reminiscent of a 2002 trial involving former Revenue
Canada tax auditor Bill Henderson, who also worked out of the
Kitchener office.
Henderson was convicted of 249 counts of fraud involving more than
$1.5 million. He was sentenced to 18 months in jail.
At his trial, the Crown’s case was that Henderson orchestrated this
fraud by recruiting his father, William Larry Henderson of Puslinch
Township, and an unknown fellow employee.
Henderson’s father testified his son provided him with all the
information he needed to obtain GST rebates by using fictitious names
of seven dairy farmers. The father said he split the $1.5 million with
his son. The father was sentenced to one year in jail after he pleaded
guilty to 51 fraud charges.
The son denied masterminding the fraud. He appealed his conviction to
the Ontario Court of Appeal and lost.
-----------------------------------------------------------
Miss a Tax Tale Miss a lot!
Visit the CRA SOTW Library at http://canada.revenue.agency.angelfire.com
------------------------------------------------------------
Alan Baggett – Tax Collector’s Bible