Soussanna Karas

The appellant, Travel Industry Council of Ontario (TICO), appealed sentences imposed on the respondents for trust account violations under the Travel Industry Act, 2002.

The respondents had pleaded guilty to failing to deposit customer funds in a designated trust account within two banking days and failing to hold customer funds in trust until payment was made to suppliers or refunds provided to customers.

The trial judge imposed suspended sentences with probation and restitution orders of $25,000 each for the individual respondents, and probation for the corporate respondent.

TICO sought imprisonment or substantial fines.

The appellate court upheld the sentences for the individuals but found the corporate sentence manifestly unfit and imposed a $25,000 fine with two years to pay.

The defendant pleaded guilty to six counts of contravening the Travel Industry Act, 2002 by acting as a travel agent without being registered.

Over a period from October 2009 to May 2010, the defendant engaged in a scheme involving unauthorized use of credit cards, misrepresentation of bookings, and diversion of client payments.

The scheme caused significant financial losses to multiple victims including a children's charity, a travel agency, and individual consumers.

The defendant was sentenced to 90 days in custody served intermittently on weekends, two years probation, and a free-standing restitution order totaling $173,832.23.