A British Columbia court has sentenced former financial consultant Kenneth David Derksen to two years less a day of house arrest after he defrauded an extremely vulnerable client of $155,800, which he lost to gambling.
Details of the Fraud
Derksen, previously employed by Investors Group Financial Services Inc., pleaded guilty to fraud over $5,000. Between November 2016 and February 2019, he transferred funds ranging from $300 to $3,000 from client John Boellaard’s retirement and savings accounts to himself via e-transfers. Boellaard was out of the country and hospitalized in Thailand during parts of this period, making him particularly susceptible.
Boellaard grew suspicious and requested an account audit. Derksen urged him not to report concerns to Investors Group. The scheme involved multiple transfers over an extended time, exploiting Derksen’s position of trust with direct account access.
Sentencing in Courtenay Court
B.C. Provincial Court Judge Jeremy Hermanson delivered the sentence on May 1 in Courtenay. The 59-year-old Derksen, a father of two, admitted the stolen funds fueled his gambling addiction. He has since self-excluded from casinos, deleted online gaming accounts, and abstained since charges surfaced.
“He has expressed his shame, guilt and regret for his actions,” Hermanson noted, adding that Derksen had not yet informed his family. The judge acknowledged minimal counseling but no evidence of a formal gambling disorder reducing blameworthiness.
Arguments and Aggravating Factors
Prosecutors sought 18 to 24 months of house arrest plus one year probation and restitution of $164,164.74 to Investors Group, covering losses and missed gains. Defense counsel proposed a similar conditional sentence emphasizing rehabilitation.
Hermanson highlighted denunciation and deterrence as key principles. Aggravating elements included the significant sum, prolonged duration, and breach of trust. “Mr. Derksen was in a position of trust, and he exploited that position,” the judge stated. Initially, Derksen denied the theft upon confrontation.
Mitigating factors comprised his guilty plea, genuine remorse, lack of prior record, unsophisticated method, community involvement as a youth sports coach and environmental group president, and current employment as a resort caretaker and handyman.
Conditions of House Arrest
Hermanson opted for community service over jail, deeming Derksen no public risk. Conditions include true house arrest with limited exceptions: work, medical needs, and three hours Saturdays for personal matters. Derksen must complete 100 hours of community service, avoid gambling venues, disclose the decision to employers and volunteer groups, serve one year probation, and repay $164,164.74 to Investors Group in Nanaimo.
Breaches could result in custody for the remainder. Case precedents indicate sentences up to four or five years for similar first-time frauds involving large sums.
