Ina Koe gets 2 years less a day for defrauding Fort McPherson of $400K

Ina Koe has beensentenced to two years less a day in jail and ordered to pay back thenearly$400,000 she defraudedfrom the hamletof Fort McPherson, N.W.T.

The sentence was handed down Thursday in N.W.T. territorial court in Fort McPherson.

• Fort McPherson hamlet status to be reinstated, $2M debt wiped

Koe, a formerfinance director for the hamlet, pleaded guilty in May to defrauding the hamlet of $399,287.02.The judge ordered Koe to pay back that amount to the hamlet's insurance company.

She wasalso sentenced totwo years of probation.

Crown lawyer Anne Pichsaid it's likely the largest case of known fraudagainst a hamlet in the N.W.T. She saidasking for a restitution order was appropriate.

"It is a lot of money but the message has to be sent that crime does not pay," she said.

"She is a person who has been employed in the pastand she is still young. There is some possibility she will earn money in the future and pay at least some of the money she took."

Koe was originally charged with two counts of fraud over $5,000amounting to $424,932.59and one count of breach of public trust.In May, Koe reserved her pleas for the second fraud charge and thebreach of public trust. The Crown has stayed those charges.

RCMP began investigatingfinancial irregularities in the hamlet's finances in March 2013, following a forensic audit.

Koe was charged with fraud in June 2015 and awarrant was issued for herarrest after she failed to appear in court in December.

Whitehorse RCMP took her into custody in February.