Mount Real fraudster Lino Matteo sentenced to five years

CTV Montreal: Lino Matteo sentenced The man behind the Mount Real fraud received the maximum sentence

Quebec businessman Lino Matteo, who defrauded investors of at least $108 million, has been sentenced to five years in prison.

Matteo was handed the sentence on Monday morning after he was found guilty in September of 270 counts of securities fraud.

Because Matteo was charged with violating the securities act, and not through the criminal code, five years in prison is the longest possible sentence available under the law for anyone found guilty of running what amounted to a Ponzi scheme.

He will also be required to pay fines of $4.9 million, though it is largely a symbolic gesture, because Matteo doesn't have any known assets.

However the Crown believes Matteo has assets in offshore accounts .

"He's way to clever," said Prosecutor Stephane Poulin. "I believe he will have access to this money at some point."

Matteo was founder and president of Mount Real, which scammed 1,600 investors, taking a substantial cut. The company collapsed in 2006 when it declared bankruptcy.

Many of the investors, like Janet Watson, lost their life's savings.

"It feels really good to see justice finally served it was everything we asked for everything we wanted," said Watson.

Catherine Macdonald was another victim in court for the sentencing.

"When we were investing we were putting our faith on the fact Mount Real was on the stock exchange, that the books were checked by reputable accounting firms," she said.

During sentencing arguments the Crown pointed out that Matteo blamed rules, regulators, and bankruptcy trustees for the fiscal loss, and said Matteo would do it all again if he could.

"To this day the defendant has shown no insight or sense of accountability, only that he's sorry," wrote the judge.

Matteo's web of companies was so complex he claimed he was the only one who could understand it.

Matteo, who represented himself throughout the trial, hired a lawyer to argue his case for sentencing arguments.

The case dragged through the courts for 12 years.

Monday's sentencing comes as he is appealing a conviction of another fraud scam.

Matteo was sentenced last year to eight years for his part in the Cinar scandal, swindling investors out of more than $120 million in a fraud scheme.

Monday's sentence will be served in addition to the Cinar sentence.