Beaupre ordered to repay $2.7 million to scam victims

By Frank Armstrong
Local News - Saturday, September 04, 2004 @ 07:00

Guy Paul Beaupre, the mastermind behind four telemarketing scams that swindled victims across Canada, was sentenced yesterday to 42 months in prison and ordered to pay his victims more than $2.7 million in restitution.

“Your crime is an enormous one,” Mr. Justice Rommel Masse said before ordering the Godfrey man to penitentiary.

Beaupre, 41, pleaded guilty Aug. 26 to five counts of fraud over $5,000 in relation to his role in Kingston-based Global Silver and The Blue Corp., Toronto-based ISDI and Mississauga-based Universal Payphone Systems.

The prison term and restitution order had already been negotiated between Crown attorney Chris Webb and Beaupre’s lawyer, Dan Scully.

Standing inside a glassed-in prisoner box, Beaupre told the judge he agreed with a statement read by Webb that described him as the mastermind behind four telemarketing scams that boldly swindled investors of millions of dollars.

“I would just like to apologize to the families and...” Beaupre said, his words dropping to an inaudible volume.

Hands clasped behind his back, his shoulders slumped, Beaupre looked at the judge and away from the half dozen victims scattered around the courtroom who came to watch his sentencing.

One of them, Russian businessman Vladmir Kolinitchenko, lost $1.2 million to Beaupre when he ran Universal Payphone Systems, a payphone distributorship in Mississauga.

Vancouver builder Don Blue lost $150,000 to ISDI, a jewelry vending machine distributorship, Toronto’s Muriel Cassidy lost $10,000 to ISDI, while retired Norich resident Jack Vandelinde lost $16,000.

Restitution has been ordered only for people who received nothing from Beaupre’s companies.

Of the people in the courtroom, only Kolinitchenko and Cassidy appeared to fit that description.

The others received some product for their money, but not what they were promised.

Crown attorney Webb told the judge he agreed to a 42-month sentence because the guilty plea provides closure for many victims and because Beaupre agreed to provide restitution to his victims.

The guilty plea also saved the courts a lot of time and money.

A long preliminary inquiry is to begin Sept. 21 for Beaupre’s three co-

accused and a four-month trial with 100 Crown witnesses from across Canada is expected to ensue. Beaupre’s plea will surely cut down on court time and resources that will be required.

Masse said the case law indicates Beaupre could have received a sentence of anywhere between six months and seven years.

After the judge left the court, Blue cupped his hands and yelled at Beaupre from the back of the courtroom.

“Go to hell, Beaupre. I hope you die in there,” he said, before being ushered outside by a police officer.

On the courthouse lawn, Beaupre’s victims said he didn’t get enough prison time.

“I would have liked to have seen six or seven years or more,” Blue said in an interview.

Although Beaupre has been ordered to repay ISDI investors almost $970,000, Blue said that figure doesn’t even come close to the amount of money he took from people.

“That’s probably only about 10 per cent of what Beaupre’s companies have pilfered,” he said.

Blue has connected with about two dozen ISDI investors as well as victims from other Beaupre-led scams.

Cassidy said she’s relieved Beaupre is finally going to prison, but she, too, doesn’t think his sentence was long enough. She also “feels bad” for the people who were not included on the Crown’s restitution list.

Like the 62 other people who are supposed to receive restitution, she has to go to court and demand some of Beaupre’s money.

To get Beaupre’s money, his assets will have to be traced.

Beaupre’s convictions are the result of two separate investigations by Peel Region Police and Kingston RCMP.

Kingston RCMP laid the charges related to The Blue Corp., a candy machine franchisor, and silver distributors Global Silver and ISDI, while Peel Region Police laid the charges related to payphone distributor Universal Payphone Systems.

Cpl. Phil Bailey, who led the RCMP's three-year investigation, had also filed three charges of conspiracy to commit fraud over $5,000 more than a year ago, but those charges were dropped yesterday.

The two Universal charges to which Beaupre pleaded guilty last week were laid less than a month ago by Det. Sgt. Ian Ganson of Peel Region Police.

Originally, Ganson filed 13 charges against Beaupre, but Beaupre pleaded guilty to only two of those charges.

The rest of the Universal charges were also dropped.

The three other co-accused are set to go to a preliminary inquiry that begins Sept. 21. It will determine if there’s enough evidence to take the three to trial.

They are Glen Lancaster, 32, of Kingston, Jocelyn Capsuyen, 36, of Toronto, and Gilles Landry, 26, of Newmarket.

Lancaster and Capsuyen face the same original six charges that Beaupre faced: three counts of fraud and three counts of conspiracy to commit fraud over $5,000. Landry, Beaupre’s nephew, is charged with fraud and conspiracy to commit fraud for his alleged role in ISDI.

Beaupre still faces a charge of criminal harassment. Police allege Beaupre made a threatening phone call to Whig-Standard reporter Frank Armstrong last summer on the day the newspaper reported Beaupre had been released on $200,000 bail.

Bailey said yesterday that coverage by The Whig was tremendously helpful with his investigation.

The newspaper uncovered fresh leads for the police while many people read the stories about Beaupre and his companies and called police with information.