Seven years for a high profile corporate fraud may not seem like much compared with the sentences handed out in the United States (see Jeffrey Skilling, Bernie Madoff et al.), but it is an eternity for Canada. The country that produced Conrad Black and Garth Drabinsky has become notorious for its light touch when it comes to dealing with boardroom felons. But something, perhaps that very fact, appeared to prompt Judge Mary Lou Benotto to take a different approach and hand out a sentence today that was toward the higher end of what was expected – including on these pages. It is even more than the 76 months Conrad Black, Mr. Drabinsky’s good friend and former Livent board member, got for his corporate fraud adventure.
The seven years that elapsed between charges being laid against Mr. Drabinsky (2002) and his sentencing (2009) shows that Canadian justice can move painfully slowly. But today also demonstrates that, in the end, reasonable justice – not the Bernie Madoff-type American overkill or the wet noodle approach so often handed out by Canada’s top securities regulator – can prevail and the time can be set to fit the crime. Even for the rich and famous.
We had some harsh things to say about some of the wording in the judge’s verdict and the slow approach taken in the sentencing process. But now it appears that Madame Justice Benotto has discharged her duties with fairness and with firmness. The security of Canada’s capital markets at home and their reputation abroad are better for her efforts.