Tuesday, July 28, 2009

Ex-cop sent to jail for fraud, lying to judge

July 28, 2009
Barbara Brown

The Hamilton Spectator
(Jul 28, 2009)

A former Hamilton cop who retired in disgrace two decades ago was convicted yesterday of further crimes of dishonesty and sentenced to 30 months in a penitentiary.

Randy Bailey, 56, pleaded guilty to defrauding Wilson, Blanchard Management Inc. of close to $530,000 and to fabricating the minutes of meetings of condominium boards of directors and altering financial statements of their corporations in order to cover up his lying and swindling.

Bailey also pleaded guilty to obstructing justice by lying to Superior Court Justice Stephen Glithero while he was representing himself in court and to breaching the terms of his release on bail.

The convicted man left the Hamilton police department under a dark cloud in the mid-1980s when he and another officer, Doug Woods, were convicted of fabricating evidence and conspiring to pervert the course of justice during the infamous "vice squad" scandal.

Those convictions stemmed from a raid by vice officers on the home of a Hamilton man accused of running an after-hours booze can. A judge found Bailey fabricated a sign -- "All Drinks $2 -- to shore up the bootlegging case against the suspect. Bailey was sentenced to a prison term of two years, nine months.

Raymond Wilson, president of Wilson, Blanchard, said in a victim-impact statement filed yesterday that he hired Bailey and for 15 years considered him a valued and trusted employee. When he first heard about frauds, Wilson said, "I felt anxious and ill and could not believe the allegations."

The judge issued a restitution order against Bailey for nearly $530,000, but Wilson said the company has suffered $1.7 million in other damages associated with the forensic investigation, legal costs, lost business and the lost productivity of three full-time employees who were assigned to sort out the mess.

Wilson said it would not be an exaggeration to say he and others have suffered depression, anxiety and loss of sleep after realizing the full extent of Bailey's criminal conduct and how it had damaged the company, management, employees and clients.

The frauds came to light when an owner of one condominium unit complained to the management company about condo fees being raised despite the building falling into disrepair and no major work getting done.

An internal investigation revealed Bailey, who managed about 12 or 15 condo properties, had been submitting false invoices for maintenance and repair work. He also stole larger sums of cash from condo reserve funds -- which owners contribute to annually to cover major repairs such as roof and window replacements -- and altered the minutes of board meetings and audited financial statements.

Assistant Crown attorney Michael Fox said Bailey and his wife had been living a lifestyle to which they were not properly entitled and the money was "frittered away" on expensive European vacations, a horse and trailer, luxury vehicles and home renovations.



The Spec

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