The second of two Langley-area men charged in a $6-million fraud was found guilty in a New Westminster courtroom on Monday.
Kirk Dennis Roberts essentially admitted his guilt in the Aggressive Roadbuilders fraud, but defence lawyer Ian Donaldson placed the bulk of the blame on Roberts’ co-accused, Matthew Brooks.
“Brooks was treating the company as his personal bank account,” Donaldson told Justice Palbinder Shergill.
Crown counsel Brian McKinley went through a summary of the Crown’s case against Roberts.
In 2006, Roberts was the controller for Aggressive Roadbuilders, and McKinley said Roberts was one of the two most senior figures at the firm, along with Aggressive’s owner Brooks.
The fraud took place when Aggressive obtained a line of credit from Scotiabank in late 2006 and early 2007.
Aggressive submitted documents to the bank showing that they were owed more than $15 million for completed road works by various clients, including municipalities such as Surrey.
In actual fact, Aggressive was owed less than a million dollars at the time.
Based on those fraudulent documents, Scotiabank agreed to a line of credit of $7 million.
“Mr. Roberts had a hand in creating that document,” said McKinley.
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Roberts was also involved in sending monthly reports to Scotiabank – interim financial statements – that showed false and inflated accounts receivable numbers, McKinley said.
Eventually, Scotiabank grew suspicious and by the summer of 2008 the fraud collapsed, as auditors were called in. After stalling for several weeks, Roberts and Brooks provided accurate numbers. The company was declared bankrupt.
While McKinley said Roberts was one of the top figures at Aggressive, Donaldson attempted to downplay his client’s power and importance.
“Roberts position is, ‘I was an employee of Brooks, I did what I was told’,” said Donaldson.
While admitting that Roberts prepared or passed along fraudulent documents, Donaldson claimed that Roberts received no benefit from the money.
Donaldson painted a picture of a profitable road-building firm that was being “looted” by its owner.
“The problem was that Brooks was taking that profit and putting it in his pocket and spending it wherever,” said Donaldson.
Brooks has already been sentenced to three and a half years in prison after he pleaded guilty last year.
Neither trial has addressed the mystery of the missing $6 million.
During Brooks’ sentencing hearing, the money was referred to as being lost or tied up in “other investments,” but Brooks’ defence lawyer also mentioned threats to her client, including 2011 drive-by shooting at Brooks’ then-home in rural Langley, and a 2014 incident in which his tires were shot out.
During Brooks’ sentencing hearing, he blurted out that Roberts knew where the money went.
“Ask where the missing money is, and who his business partners are!” Brooks said.
Roberts did not speak during his appearance and guilty verdict Monday.
Although Aggressive went bankrupt, Roberts has continued working in road building in the Lower Mainland since then.
