Two ex-car salespeople have received sentences for a significant fraud case linked to a dealership in New Minas, N.S. One of them has been sent to prison and fined over $500,000. Darren Bateman, aged 60 and known for tax fraud, was given a two-year prison term by Halifax provincial court. Orlando Smith, 65, the former general manager of the dealership, was handed a two-year conditional sentence, including one year of house arrest.
During sentencing, Judge Elizabeth Buckle remarked that while Bateman’s actions seemed motivated by greed, Smith’s motives were harder to discern given his ownership stake in the defrauded company, Summit Hyundai. The case involved elaborate schemes to conceal a growing inventory of used cars from the financing bank, resulting in a total fraud amounting to nearly $1 million.
The fraudulent practices, which involved misleading car swaps and fake transactions, were orchestrated to circumvent financing terms regarding the sale of used vehicles. Despite claims of innocence, evidence presented in court showed that Bateman’s company engaged in deceptive practices, including selling non-existent vehicles and falsifying documentation.
Summit Hyundai’s owner, Ken Barrett, expressed the devastating financial and emotional toll the fraud had on him and his family, leading to the sale of his properties and business. While acknowledging the damage caused by the fraud, the court noted that Summit’s financial troubles predated the fraudulent activities.
Smith, who had no prior criminal record, faced financial penalties and house arrest as part of his sentence. Despite benefiting less from the fraud compared to Bateman, Smith was ordered to pay a fine of $53,500 over ten years. In contrast, Bateman, who profited significantly from the scheme, was fined over half a million dollars and given a ten-year repayment period.
Buckle highlighted Bateman’s previous tax fraud conviction and outstanding debts from a past case. Barrett, now working in construction management, expressed the profound financial impact the fraud had on his life and career, lamenting the loss of his car business due to the fraudulent activities.
Overall, the sentencing reflects the severity of the fraudulent activities and the lasting repercussions on those involved, underscoring the importance of upholding financial integrity and accountability in business operations.
