The largest fraud case by dollar amount in Waterloo Region’s history has come to an end, with Daniel P. Reeve being found guilty of fraud and theft.

In delivering his sentence, Justice Tony Skarica called Reeve a “pathological liar”, and urged the Crown to consider asking for a lengthy prison sentence.

Allegations that Reeve, a well known investment advisor and financial author, was using his clients’ money for personal purposes first came to light in 2009. He was arrested in 2012, and has been in custody ever since.

Reeve was initially accused of defrauding 175 people out of about $30 million. The figures had been lowered to 41 victims and $10 million in losses by the time his trial began in 2015.

Over 19 months, the trial heard from victims and employees of Reeve’s investment businesses, as well as Reeve himself. Many victims testified that they had only ever received a small fraction of the money they invested with Reeve back, despite promises of strong returns.

In total, the 41 people Reeve was convicted of defrauding invested $12 million with him, and only ever saw returns of $2 million.

Reeve told the court that he “lost everything” when his companies closed, and ended up working in roofing and at a hardware store before he was arrested.

Reading from his decision, Skarica said that it was clear Reeve had actually been using his clients’ money to pay for his own lifestyle, to support his ex-wife and to keep the Ponzi scheme of his investment companies alive.

One conviction for fraud over $5,000 carries a maximum sentence of 14 years in prison, while the maximum sentence for one count of theft over $5,000 is 10 years in prison.

Skarica suggested that, in considering what sentence to ask for, the Crown should look to the American example of Bernie Madoff, who was sentenced to 150 years for his role in a US$65-billion fraud case.

Speaking outside the courthouse, Crown prosecutor Fraser McCracken said he would review the judge’s guidance and his 1,000-page sentencing report before coming to any conclusion about a sentencing recommendation.

Reeve's sentencing hearing will begin June 11, 2018, and is expected to last for one week.

With reporting by Nicole Lampa