No jail for Ponzi perpetrator

No jail for Ponzi perpetrator
By Louise Dickson, Times Colonist April 12, 2012

A former advertising sales representative at CHEK TV who defrauded friends in the business community out of $176,000 to finance his gambling addiction will not serve time in jail.

On Wednesday, B.C. Supreme Court Justice Robert Johnston handed Michael Muir a conditional sentence of two years less a day, followed by two years of probation. Muir, 43, had pleaded guilty to five counts of fraud over $5,000 between June 2007 and January 2009.

"The offences here are serious," Johnston said. "Mr. Muir's moral culpability is high. It is perhaps explained, but not excused, by his twin addictions to alcohol and gambling."

Muir is prohibited from drinking alcohol and gambling for the duration of his sentence and probation. He must abide by a 7 p.m. to 7 a.m. curfew during his twoyear sentence.

Johnston also made a standalone restitution order in favour of Muir's five victims. This means they can decide whether to collect on the judgment in civil court.

Before Johnston passed sentence, Muir stood and apologized to his former friends.

Johnston found the frauds were all part of the same Ponzi scheme. Muir told his business friends he was buying a large number of flat-screen TVs from a supplier and selling them to high-end hotels. He promised a 20 per cent return on the investments in a short period of time.

Although the victims felt embarrassed, ashamed and betrayed when the scheme fell through, all five were experienced businessmen and not particularly vulnerable, Johnston noted.

"None of the victims paused to ask themselves why major hotels would be incapable of finding their own flat-screen televisions and cut out the middleman able to generate this 20 per cent profit in just a few months," he said.


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