Disgraced investment dealer Frank Harrison Dew was sentenced to 54 months in federal prison Wednesday in Charlottetown Provincial Court, for bilking clients out of millions of dollars.
Dew, 50, who ran a business called Morton Dew Ltd., in Charlottetown, had pleaded guilty to 26 counts of fraud.
“This is a major fraud,” Crown Prosecutor Jeff MacDonald told court. “He used his reputation as an investment advisor to prey upon his victims. Their trust in him was complete and he used that trust to defraud them.”
Dew and a co-conspirator defrauded their clients of $2,911,076.64 over a five-year period ending in June 2015, according to an agreed statement of facts between the Crown and Dew.
MacDonald called Dew’s actions, “nightmarish.”
The agreed facts read in court Wednesday revealed details of Dew’s actions.
Many of the frauds were linked to sales commissions obtained by Dew from life insurance policies which were then allowed to lapse.
Dew and his co-conspirator created false statements for clients, according to the agreed statement.
Mailing addresses, banking information altered
In some cases, clients’ mailing addresses were changed to post office boxes controlled by Morton Dew Ltd., so clients would not see actual statements from financial institutions.
Client banking information was changed to a bank account associated with Morton Dew.
Clients wrote cheques payable to Morton Dew on the understanding that the money would pay for their life insurance policies or investment products, but the funds were not deposited into client accounts.
Alarm bells began ringing in late 2014, when an investment company canceled its agreement with Dew, because of the number of lapsed insurance policies. That investment company contacted P.E.I.’s Consumer, Corporate and Insurance Division,…