SYDNEY, NS – A Supreme Court trial of four defendants charged with alleged $ 3.6 million tax fraud is now entering its final stage with closing fees.
Federal Prosecutors Mark Donohue and Constantin Draghici-Vasileau are expected to deliver their final speech on Wednesday, while the defendants are due to give their final summary on Thursday morning.
At the conclusion of the trial on Tuesday, the defendants informed the court that they would not call any witnesses.
The accused are Lydia Saker, 76, of Sydney Mines; and her daughters Georgette Young, 49, of North Sydney; Angela MacDonald, 47, of Kentville; and Nadia Saker, 45, from Leitches Creek. All defendants represent themselves.
The family allegedly filed false claims for tax rebates with the Canada Revenue Agency.
The four people plus 10 companies they run are confronted with a total of 60 criminal offenses: 40 cases of fraud (criminal code violations) and 20 cases of false and misleading information (violations of the excise tax law).
The crimes are said to have occurred between January 2011 and July 2015.
During that period, CRA paid out $ 275,960 in refunds to the companies, along with an additional $ 81,399.61 applied to corporate debt to CRA totaling $ 307,360.
The defendant requested a total of approximately $ 3.6 million in reimbursement.
The final key witness was Michael Boudreau, a Canada Revenue Agency detective who was putting the case against the defendant together.
During the cross-examination by Defendant Georgette Young, Boudreau said that all the figures indicate that the level of business sales reported by the companies was not reflected or documented.
He said the numbers presented by the indicted companies are more in line with the business volume of real estate firms or large retail stores.
During Young’s interrogation, prosecutors repeatedly opposed the issue, citing relevance, to which Judge Robin Gogan also frequently referred.
Young questioned Boudreau about the return of items taken from her home when CRA investigators were issuing search warrants in November 2017.
The Crown objected because the subject had been discussed and dealt with beforehand.
Young also suggested that Boudreau and retired CRA auditor Carol Power knew each other well, despite Boudreau’s claims to the contrary.
In reciting parts of Power’s testimony, it became clear that the couple may have met only once at a conference in the early 2000s.
Young also asked Boudreau if he thought it would be difficult for the defendant to remember everything they’d done at their companies when it came to filing returns.
“He cannot comment on what the defendant thinks,” said Gogan, who would later invite Young to ask more specific questions and to ask questions related to Boudreau’s personal knowledge.
Young also pushed Boudreau over contact with Steven MacDonald, whom the defendants referred to in court as Angela MacDonald’s soon-to-be ex-husband.
Young wanted to know who was in the top callers on a CRA tipline for tax evaders.
“What is the relevance of this?” asked Gogan.
“You have to wait and see,” said a smiling and giggling Young.
Donohue also got up to object to the survey and Gogan asked again about the relevance.
Boudreau said that while Steven MacDonald was under investigation, charges were never brought.
Angela MacDonald also briefly questioned Boudreau about an alleged incident at her Kentville home in which she alleged he threatened her.
Gogan interjected and advised her that the question was inappropriate.
There was also a brief hiatus Tuesday after Donohue requested a break after receiving a call regarding his family’s pet, an Australian Shepherd named Ginny.
Donohue said the dog had seen the vet over concerns about exposure to a suspected form of algae. He said the vet had both his number and his wife’s phone number, but decided to call Donohue to inform him of the dog’s progress. The dog is expected to make a full recovery.
The evidence from the study suggests a pattern of inter-firm settlement between family businesses, from work to management to marketing.
Witnesses like Boudreau and Power, who examined company documents, testified that there was little evidence of such robust sales.
Companies include Housewives in Heels, Artisan Hair Loss Therapy, Latatia Advertising, Maddie and Bella’s Children’s Clothing, New and Chic Incorporated, Kishk, Juliette and John Incorporated, and The Spaghetti Benders. There were also two numbered companies. Some sold accessories while others sold gourmet salad dressings, cookbooks, clothing items, and frozen foods.
The process will now continue on Wednesday.