Elphicke gets house arrest in Penticton hockey fraud case

PENTICTON – One of two men accused in a fraud that cost hockey families thousands of dollars was sentenced in Penticton court today.

Michael Elphicke was sentenced on two counts of fraud over $5,000, one count of unauthorized management of a lottery scheme for his part in a fraud under the guise of the Okanagan Elite Hockey Association.

The scheme involved families of kids at the Bantam hockey level attending Okanagan Hockey School in Penticton and a planned hockey tour of Europe.

Elphicke was convicted in a trial that concluded in late October, 2017.

His partner, Loren Reagan, is currently in custody awaiting trial on similar charges.

The fraud took place between June, 2011 and January, 2012. Elphicke was found guilty of emptying bank accounts of funds collected for the Europe trip as well as a fund for a planned hockey dorm near the South Okanagan Events Centre that never materialized for his own personal use.

He was also found guilty of running an unauthorized lottery scheme as some of the proceeds came from raffles and other fundraising events.

Crown Prosecutor Patrick Fullerton sought a jail sentence of 18 to 24 months for the fraud, in addition to three years of probation, which ultimately cost 16 families a total of $128,836 in deposits and contributions from fund raising activities such as raffles and meat draws.

Fullerton told Judge Austin Cullen Elphicke’s dated criminal record included “crimes of dishonesty,” saying the Calgary man has “no understanding of the wrong he has done."

Calling the fraud sophisticated and complex, he said not only parents, but kids had also been affected by the scam, reading three victim impact statements to the court.

Ken Whitehead of Canoe, B.C. wrote he and his son were “blown away” when they heard of the fraud. Whitehead lost $7,000.

Another victim claimed a loss of $11,400.

Fullerton said the victims came from all over B.C., as well as Alberta and Washington State.

Defence lawyer James Pennington asked for a conditional sentence of two years less a day, under stringent conditions which included a stand alone restitution order for $116,000.

Pennington said his client shared a lesser portion of guilt for the fraud and would likely have his health compromised by incarceration.

Elphicke suffers from type 2 diabetes, kidney disease and related ailments. He also needs dialysis three times a week.

Pennington said his client was employed in a position that allowed him to work at home, where the courts would have the option to assess his monthly income for repayment.

Pennington also argued there were inadequate medical facilities at Okanagan Correctional Centre to serve Elphicke’s needs.

Elphicke expressed thanks to the court for patience shown while he was hospitalized during his trial over his health issues.

He asserted the fraud was not a planned event.

“My son was a performance athlete, a hockey player and I didn’t really do my homework on who my partner was. It obviously paid negative dividends for me and my family for not doing that,” he said, adding he was sorry he didn’t do more to stand in the way of Reagan.

Judge Cullen agreed that Elphicke’s offences deserved a genuine jail sentence, calling his degree of complicity in the fraud “high,” and noting the victims lost not only a significant amount of money, but suffered a loss of trust in charitable fundraising activities, as well as suffering embarrassment for having unwittingly raised funds that went to the fraud.

“The issue is health,” the judge declared, noting Okanagan Correctional Centre wasn’t optimal for an inmate needing transfer to a medical facility for three times a week dialysis.

Judge Cullen sentenced Elphicke to two years’ less a day house arrest, under stringent conditions including maintaining a job, and limited visitors.

He will have five years to pay back $117,000 through garnishing of one quarter of his wages.

He’ll also serve three years probation.

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