Yogi
08-16-2005, 06:58 PM
He's lucky he still has "friends" in high places.
MONTREAL (CP) - Paul Coffin, the first person charged in the sponsorship scandal, said Tuesday he has taken a mortgage on his house, borrowed from friends and cashed in an RRSP to repay the federal government $1 million.
The advertising executive had owed the federal government more than $1.5 million but Coffin testified at his sentencing hearing on fraud convictions that his lawyers had recently worked out a deal for a $1-million repayment.
Coffin, who appeared contrite and was often emotional as he testified, pleaded guilty in May to 15 fraud charges related to the scandal in which he defrauded the federal government of $1,556,625 between 1997 and 2002 for little or no work.
"I would like to apologize to all Canadians," Coffin told Quebec Superior Court Justice Jean-Guy Boilard.
Coffin said he's ashamed of himself for defrauding taxpayers.
"I realize what I have done," the 63-year-old said. "I know I have tarnished my family name. I know I have disappointed all Canadians."
The sponsorship program was designed to increase the visibility of the federal Liberal government in Quebec after the narrow federalist victory in the 1995 sovereignty referendum.
Coffin told the judge he would also like to give a conference on business ethics so others can learn from his mistakes. He said he has taken steps to do so, pending the court's decision.
Crown prosecutor Francois Drolet was not impressed by Coffin's testimony and said the court has to send a "clear message" with its sentence.
He suggested Coffin be sentenced to 34 months in jail for his crimes.
Raphael Schachter, one of Coffin's lawyers, has suggested a conditional sentence to be served in the community.
Boilard said will render sentence on Sept. 19.
Former Groupaction executive Jean Brault and former federal bureaucrat Chuck Guite also face several fraud-related charges in the sponsorship scandal. Their joint trial is expected to begin in October.
Coffin told the court he got a $307,000 mortgage on his house, borrowed about $500,000 from friends and took money out of his RRSP to come up with the $1 million.
Under questioning from his other lawyer, Pierre Dupras, Coffin recounted his personal and work history, saying his family has a long tradition of community service which he has followed.
Coffin said his only inkling that something was awry with his sponsorship contracts was when the federal Public Works Department wanted to review them in 2003, an action that was followed by an RCMP raid on his office.
He turned himself over to the RCMP on Sept. 10, 2003, after learning they wanted to talk to him and was arrested. He was released the same day on several conditions.
Coffin said he co-operated with all inquiries and was forthcoming with the commission of inquiry headed by Justice John Gomery because he remembered his mother's advice to him as a 10-year-old that "honesty is the best policy."
He remembered last May 31 - the day he pleaded guilty - as "a very black day" but said he is glad he entered the plea.
Schachter argued that a conditional sentence would best serve justice because Coffin has shown remorse, reimbursed the federal government and seeks to rebuild his life. He also said there is no chance Coffin will reoffend.
http://cnews.canoe.ca/CNEWS/Canada/2005/08/16/1175634-cp.html
MONTREAL (CP) - Paul Coffin, the first person charged in the sponsorship scandal, said Tuesday he has taken a mortgage on his house, borrowed from friends and cashed in an RRSP to repay the federal government $1 million.
The advertising executive had owed the federal government more than $1.5 million but Coffin testified at his sentencing hearing on fraud convictions that his lawyers had recently worked out a deal for a $1-million repayment.
Coffin, who appeared contrite and was often emotional as he testified, pleaded guilty in May to 15 fraud charges related to the scandal in which he defrauded the federal government of $1,556,625 between 1997 and 2002 for little or no work.
"I would like to apologize to all Canadians," Coffin told Quebec Superior Court Justice Jean-Guy Boilard.
Coffin said he's ashamed of himself for defrauding taxpayers.
"I realize what I have done," the 63-year-old said. "I know I have tarnished my family name. I know I have disappointed all Canadians."
The sponsorship program was designed to increase the visibility of the federal Liberal government in Quebec after the narrow federalist victory in the 1995 sovereignty referendum.
Coffin told the judge he would also like to give a conference on business ethics so others can learn from his mistakes. He said he has taken steps to do so, pending the court's decision.
Crown prosecutor Francois Drolet was not impressed by Coffin's testimony and said the court has to send a "clear message" with its sentence.
He suggested Coffin be sentenced to 34 months in jail for his crimes.
Raphael Schachter, one of Coffin's lawyers, has suggested a conditional sentence to be served in the community.
Boilard said will render sentence on Sept. 19.
Former Groupaction executive Jean Brault and former federal bureaucrat Chuck Guite also face several fraud-related charges in the sponsorship scandal. Their joint trial is expected to begin in October.
Coffin told the court he got a $307,000 mortgage on his house, borrowed about $500,000 from friends and took money out of his RRSP to come up with the $1 million.
Under questioning from his other lawyer, Pierre Dupras, Coffin recounted his personal and work history, saying his family has a long tradition of community service which he has followed.
Coffin said his only inkling that something was awry with his sponsorship contracts was when the federal Public Works Department wanted to review them in 2003, an action that was followed by an RCMP raid on his office.
He turned himself over to the RCMP on Sept. 10, 2003, after learning they wanted to talk to him and was arrested. He was released the same day on several conditions.
Coffin said he co-operated with all inquiries and was forthcoming with the commission of inquiry headed by Justice John Gomery because he remembered his mother's advice to him as a 10-year-old that "honesty is the best policy."
He remembered last May 31 - the day he pleaded guilty - as "a very black day" but said he is glad he entered the plea.
Schachter argued that a conditional sentence would best serve justice because Coffin has shown remorse, reimbursed the federal government and seeks to rebuild his life. He also said there is no chance Coffin will reoffend.
http://cnews.canoe.ca/CNEWS/Canada/2005/08/16/1175634-cp.html