Time in jail was the dividend paid to an investment adviser convicted of stealing millions of dollars from investors.
Michael David Chodorowski, 41, was sentenced to six years in jail in Nanaimo Provincial court Friday after pleading guilty to four of eight counts of theft over $5,000. He is also required to pay restitution in the amount of $1.65 million.
Chodorowski was arrested in March 2012 at Nanaimo Airport, following an investigation started by Nanaimo RCMP and the B.C. Securities Commission Dec. 1, 2009.
The investigation determined Chodorowski conducted a large scale Ponzi scheme in which his fraudulent investment operation would pay returns to separate investors from their own money, or by subsequent investors, rather than from actual profits. Chodorowski then diverted the money into his personal bank accounts.
The amount of money taken from investors in B.C. and Alberta totaled more than $2.5 million. The B.C. Securities Commission had also charged Chodorowski with 30 counts of fraud and breaching the Securities Act.
Chodorowski has remained in custody since his arrest.
“This investigation was complex and time consuming. The sentence is also a testament to the professionalism and diligence demonstrated by the primary investigator Const. Melodie Gilmour,” said Const. Gary O’Brien, Nanaimo RCMP spokesman. “This complex file took over two years to investigate. Her hard work, attention to detail and thoroughness was evident with the substantial sentence handed out on Friday.”