A British Columbia judge imposes two years less a day of house arrest on a former financial consultant who defrauded an extremely vulnerable client of $155,800, which he lost to gambling.
Kenneth David Derksen, previously with Investors Group Financial Services Inc., pleads guilty to fraud over $5,000. He transferred funds from client John Boellaard’s retirement and savings accounts to himself via e-transfers ranging from $300 to $3,000. These transfers occur over a prolonged period from November 2016 to February 2019, while Boellaard remains out of the country and, at times, hospitalized in Thailand.
Sentencing Decision
Judge Jeremy Hermanson delivers the sentence in a May 1 decision from Courtenay B.C. Provincial Court. He notes Derksen expresses shame, guilt, and regret, though he has not yet informed his family. “He regrets the impact that his actions will have on them,” Hermanson writes.
The 59-year-old father of two adult children admits the stolen funds fuel his gambling addiction. Hermanson accepts online gambling as a contributing factor, pointing out Derksen loses hundreds of thousands, including his marriage, despite minimal counseling. Derksen bans himself from casinos, deletes online gaming profiles, and stops gambling after charges surface. No evidence shows lavish spending; the money goes directly to gambling.
Arguments and Considerations
Prosecutors seek 18 months to two years less a day of custody, plus one year probation, and restitution of $164,164.74 to Investors Group, covering stolen funds plus missed gains. Defense recommends 18 to 24 months conditional sentence.
Hermanson weighs jail versus community service, prioritizing denunciation and deterrence. He describes the fraud as unsophisticated. Boellaard grows suspicious, demands an account audit, and Derksen begs him not to report to Investors Group. During Boellaard’s 2018 hospitalization in Thailand, Derksen sends money to both.
Derksen holds no prior record. Employed at Investors Group from 2007 to 2021, he loses the job upon discovery and now works as a resort caretaker and handyman. Community involvement includes coaching youth soccer and hockey, and leading a local environmental group. Lack of medical evidence for gambling disorder limits mitigation, though self-cessation impresses.
Aggravating and Mitigating Factors
Aggravating elements include the significant sum, prolonged duration, multiple transfers, and breach of trust. Boellaard grants direct account access based on trust, which Derksen exploits. Initially denying theft, his guilty plea saves resources and shows genuine remorse.
Case law sets ranges from high provincial to four-to-five-year federal terms for similar first-offender frauds. Hermanson finds Derksen poses no public risk and crafts house arrest to meet sentencing goals, considering plea, remorse, simplicity, family ties, and rehabilitation.
House Arrest Conditions
Strict house arrest allows exits for work, medical emergencies, and three hours Saturdays for personal matters. Derksen completes 100 hours community work, provides the decision to employers and volunteer groups, avoids gambling venues, serves one year probation, and pays $164,164.74 restitution to Investors Group in Nanaimo.
Breaches risk custody for the remainder.
