Insurance broker pleads guilty to fraud

A former Winnipeg insurance broker has pleaded guilty to 15 counts of fraud after allegedly spending nearly $1.5 million worth of clients' money.

Gary Palmer, 64, cut short his scheduled five-week trial by making the plea on Tuesday just a few days into it.

In exchange for his plea to 15 charges, the Crown dropped nine other charges against Palmer, who was representing himself in court.

'He should spend that kind of time behind bars then we'll call it even.' Greg Downey, who lost more than $30,000

Palmer was independently contracted with Great-West Life Assurance Company when the fraud occurred between 1998 and 2006.

Police alleged that Palmer, presenting himself as a financial advisor, convinced a number of people to make withdrawals from their current investment accounts on the premise of transferring the funds to new products.

He then allegedly deposited the money into his business account and used it for his own personal use.

The scheme came to light when a client received a tax bill for the withdrawals.

Great-West Life conducted an internal investigation then notified the police. Charges were laid in 2006.

Greg Downey, who lost more than $30,000 to Palmer, doesn't ever expect to recover the money he's lost. But he said some of the sting would be alleviated if Downey is sentenced to spend a few years in prison.

"He had at least 10 very good years of going to a cruise every year, going out to his half-a-million-dollar cottage in Lake of the Woods, stuff like I'm never going to be able to afford to do," said Downey.

"So he should spend that kind of time behind bars then we'll call it even."

The maximum penalty Palmer faces is 14 years behind bars. He'll be sentenced in August.