Financial adviser spent $5.8M at casino in North Battleford, Sask.
The North Battleford, Sask., financial adviser who pleaded guilty to defrauding 10 people of their life savings spent almost $6 million in the local casino, court has heard.
And while she spent the big bucks at the Gold Eagle Casino, she won big bucks, too, according to a recently published decision on the Canlii legal database.
Unfortunately for her victims, she lost more than she won.
On March 11, Adelia Kaminsky, 52, was sentenced to four years in prison for defrauding clients between May 2006 and February 2013. The 10 clients, ranging in age from 52 to 86, lost a total of around $639,000.
Kaminsky was a contract worker with Sentinel Financial Management Corporation and had her own business known as AK Financial.
She advised her victims to invest their money in Envirocan and Forex — the former being completely fictitious and the latter being a high-risk foreign currency exchange.
Nothing was invested, however. The money went into Kaminsky's accounts and she used it on herself.
She spent about $124,000 on the Home Shopping Channel, but the majority of the money was spent at the casino.
"I am told that according to the forensic audit she spent almost $5.8 million at the casino but got back about $5.1 million, only losing about $665,000," provincial court Judge Daniel O'Hanlon said in his 12-page written decision.
"In other words, she lost slightly more at the casino than she stole or defrauded her victims and this even though I am told she did not have a gambling addiction."
That she would spend so much money in a casino speaks to the extravagance of her lifestyle, the judge said.
O'Hanlon said the victim impact statements showed the extent of the harm she caused.
"Many viewed the accused not only as a financial investment adviser but also as a friend and even as a confidante," he wrote. "Many are now suffering from stress, depression, and anxiety, along with other health concerns."
Her defence lawyer pointed out that it was a first offence, Kaminsky was extremely remorseful and pleaded guilty to the charge.
The judge also ordered restitution, requiring Kaminsky to pay the investors back.
