Canmore accountant sentenced to 5 years in prison for fraud, ordered to pay back $1.6M

A former Canmore accountant who dupedinvestors out of millions of dollarshas been sentenced to 5 years in prison and has been ordered to pay back $1.6 million.

James Russell Neilson, 54, was found guilty of fraud and money laundering stemming from illegal activity involving his business,Abaca Solutions, between 2009 and 2014.

If he does not pay back his investors, he could face another five years behind bars.

"Mr. Neilson has shown no effort to put his remorse into actions," said JusticeKristineEidsvik in delivering her decision.

Many of Neilson's victims lostretirement funds and suffered "tremendous emotional tolls," noted the judge.

On Monday afternoon,Eidsviksentenced Neilson after hearing arguments last month from prosecutor Steven Johnston, who hadproposeda nine-year sentence, and defencelawyer MerylFriedland, who argued for a three-year prison term.

• 'I am not the same man': Canmore accountant who defrauded investors asks for lenient sentence

Beginning in 2009, Neilson began convincing friends, family and former clientseight people and one company to invest in hisCanmore-based company, Abaca.

He did this by showingfraudulentdocuments, including financial statements, convincing investors that workers in the Philippines would be used forservices in order to save money.

Neilson's business plan involved Abacaproviding offshore accounting services to mid-sized accounting firms.

He told his investors they'd be paid through dividends but little, if any, were paid out.

"[Neilson] was successful until he was caught," saidEidsvik.

The judge also commented on Neilson'ssophisticationin the"levels of deceit and fraud" he used to run his scam.

At the end of the hearing, a sheriff escorted Neilson into custody so he could begin serving his sentence.