www.oakvillebeaver.com The Oakville Beaver, Wednesday August 20, 2008 - 5 New trial ordered in massive GST fraud case Appeal court overturns Oakville man's conviction By Louie Rosella SPECIAL TO THE BEAVER Since 1968 An Oakville man and his Mississauga friend, who were found guilty of bilking the federal government out of $24 million in the largest GST fraud in Canadian history, have had their convictions overturned. In a ruling handed down last week, the Ontario Court of Appeal ordered a new trial for Gregory Postnikoff, 59, of Oakville, and Ed Prokofiew, 48, of Mississauga. Postnikoff, a former furniture store owner, had his convictions overturned. His conditional sentence will be quashed in the coming weeks. Prokofiew was sentenced in 2004 by Justice Lynda Templeton to four years in jail, after being found guilty of conspiracy to defraud the government of more than $5,000 and multiple counts of fraud over $5,000. Those convictions have been quashed by the appeal judges. Prokofiew didn't serve any jail time pending his appeal. A new trial date has yet to be set. The judges ruled that the trial judge, Templeton, "gave insufficient reasons" for convicting both men. The "massive...sophisticated" scheme, which the trial judge said was fuelled by "significant cunning and deceit," lasted more than three years and involved several bogus car companies claiming GST rebates through phony sales made to Aboriginal Peoples and fake aboriginal companies at car auctions in New Brunswick and other provinces. Court heard organizers of the scheme targeted aboriginals because of their tax-exempt status and eligibility for GST rebates. But instead of the aboriginals receiving rebates, the organizers collected, court heard. Organizers had apparently prepared vehicles to be sold at the auction, but they were never sold. The criminal ring was concealed for so long through an elaborate trail of paperwork, the judge was told. The appeal judges said although Templeton found that Prokofiew, a former sales manager at Oakville Motors, associated with the other men charged in the scheme and had control over some of the businesses used, that doesn't make him guilty. "These findings could not support a conviction for conspiracy. The problem with the first finding (that he knew the accused men) is that the trial judge failed to take this finding to the next step and explicitly find that Mr. Prokofiew was involved in the illegitimate transactions engaged in by some of the other defendants," the judges said in their ruling. "There is a similar problem with the second finding (that he owned some of the involved businesses). It would appear that the trial judge implicitly concluded that Mr. Prokofiew's control over the transactions of certain companies found to be involved in the scheme established his involvement in the conspiracy. "Again, the difficulty with these findings is that the trial judge failed to distinguish between the legitimate and illegitimate transactions of these companies and specifically identify what evidence established Mr. Prokofiew's involvement in the illegitimate transactions." A number of people were arrested following the conclusion of Project Phantom, a four-year joint-forces operation targeting GST fraud in the auto industry. Four were found not guilty in 2004, while two others entered guilty pleas. Auto and Home Insurance We find the right price, coverage and service for you. We deliver outstanding personal service: · When you call our office we ask for your name, not your account number. · You speak to the same person every time you call so we know who you are. · Proudly serving Oakville for 40 years. Please call us today for a Home & Auto Quote www.dobson-toncic.com 101-2020 Winston Park Drive, Oakville ON, L6H 6X7 905-829-2907 Certified Pre-Owned. Only One Available Ford plant will build new Lincoln MKT The Oakville Ford Assembly plant will begin manufacturing the new Lincoln MKT during the 2009 calendar year. Ford made the announcement in a Friday press release in which it noted the vehicle concept's warm reception at the 2008 North American International Auto Show. The MKT will offer the comfort of a luxury sedan, the spaciousness and flexibility of a crossover and the performance of a sports sedan, courtesy of its EcoBoost engine, Ford officials said. View our inventory online at www.pfaffoakville.com 11 2 1 5 4 Porsche 911's Porsche Boxster's Porsche Cayman S Porsche Cayenne Sport Utilities Mercedes-Benz e ungalow Garden Hom B 1,000 sq. ft. Over 65? Tired of cutting grass & shovelling snow? Enjoy Lifestyle Freedom. Woodside Mews A P R O J E C T O F T H E R O TA R Y C L U B O F O A K V I L L E Choose Pfaff Oakville (905) 469-8854 1-2416 Wyecroft Road Oakville, ON www.pfaffoakville.com Everything You Need For Daily Living On One Floor... · Garage, laundry, master bedroom, den, living room, verandah and patio · Maintenance-free living · Your capital appreciates · Attractive clubhouse · Near transit, library, churches, shopping, seniors' recreation centre! REBECCA THIRD LINE normandy@cogeco.net W. D. ER OR SH KE LA Coronation Park FOURTH LINE 905.338.1657 WOODSIDE Library