A man standing trial over a major Penticton fraud case told the court he expected to personally gain over $74,000 from a failed youth hockey trip to Europe.
Michael Elphicke, one of two men charged with fraud and theft over $5,000 and managing an unauthorized lottery scheme, took the stand for the first time in his trial, two weeks into the hearings.
Related:
Elphicke, now 51, told the court despite living in Winfield at the time of the alleged offence, and business partner Loren Reagan being based out of Calgary, the Okanagan Elite Hockey Association was operated out of Penticton due to Reagan香蕉视频直播檚 hockey parent contacts at the Okanagan Hockey Academy.
He said he first met Reagan 香蕉视频直播� currently allegedly living in Kuwait 香蕉视频直播� in February or March of 2011, with both of their kids playing hockey.
Elphicke said he enjoyed the company of Reagan when the two first met, and they continued to meet for beers and to talk about hockey, leading up to Reagan taking Elphicke香蕉视频直播檚 son to a hockey tournament in Whistler in May 2011.
Related:
Shortly following that trip, the European hockey trip first came up, as Reagan reportedly showed Elphicke and his wife some pictures from a trip he had taken in the past.
At around that time, Elphicke, a diabetic with increasing health complications and now on dialysis treatment, said he was feeling too sick and not in a financial position to attend a European hockey trip. But he and his wife eventually decided to sign on with the trip, according to Elphicke, with the pair expected to take a major role in organizing the trip to offset the pricey cost.
Co-accused Loren Reagan expected to get under $100k, Elphicke expected to get $90k (at est. 20% of revenue).
香蕉视频直播� Dustin Godfrey (@dustinrgodfrey)
Much of Elphicke香蕉视频直播檚 morning testimony revolved around a meeting between him, his wife and Reagan in Elphicke香蕉视频直播檚 backyard in May 2011, shortly after the Whistler tournament. In that meeting, Reagan reportedly pitched the tournament to the Elphickes.
Related:
At the time, the group expected to see three teams of around 54 travellers 香蕉视频直播� 18 kids plus two parents each 香蕉视频直播� joining the trip, at a total revenue of around $891,000
Elphicke said the trip had always been planned as a for-profit venture, and that the Elphickes and Reagan were always expected to take in a personal income to make the trip 香蕉视频直播渨orth our while.香蕉视频直播�
So, while the projected revenue was just shy of $900,000, the trip 香蕉视频直播� at its base 香蕉视频直播� was expected to run $726,000. There were other expected costs including:
That's a little over 50% of total proj. revenues.
香蕉视频直播� Dustin Godfrey (@dustinrgodfrey)
香蕉视频直播淚 think profit was something like $160,000, of which we all agreed that 50 per cent of that profit could be spent during and before the trip, and the other 50 per cent would be dispersed to the three partners equally at the end of the trip when we came home,香蕉视频直播� Elphicke told the court.
Related:
Upon inspecting the records of the group香蕉视频直播檚 initial meetings, in which they outlined a budget, Elphicke noted the expected revenue was just under $189,000.
Reagan was expected to take half of that, while the Elphickes were each expected to get 25 per cent, with a portion of each of their profits to go toward funding their trip. Initially, administrative fees 香蕉视频直播� the trio香蕉视频直播檚 profits 香蕉视频直播� were set at 15 per cent, but the group later adjusted that to 20 per cent.
While Reagan was paying for three people to go on the trip, making a total of $83,000 in profit after the trip expenses, while the Elphickes, paying for five people to go, would make around $74,000 after expenses.
Related:
But evidence outlined by a federal government forensic accountant indicated by January 2012, Reagan had spent $82,000 between himself and a failed hockey dorm project he was working on at the time, while the Elphickes had spent around $17,000.
In total, Reagan香蕉视频直播檚 spending went not only over his allocated 50-per-cent mark to spend before the trip, but almost hit his projected personal profit altogether. Between all three, the $99,000 spent was over the 50-per-cent mark, though Reagan carried the vast majority of that overt spending.
While the group had paid their initial $15,000 deposit to trip planners Azorcan Global Tours, when time came to make their next payment, just $13,000 remained in the bank accounts, leading to the demise of the trip and the OEHA.
Although numerous hockey parents have suggested on the witness stand that they never knew the three partners were expected to profit from the venture, Elphicke香蕉视频直播檚 lawyer James Pennington pointed to documents handed to parents, which mentioned a 香蕉视频直播渢o be determined香蕉视频直播� administrative fee.
Related:
香蕉视频直播淪o that everybody knew that there was a fee being directed to our business for the administration of this program,香蕉视频直播� Elphicke told the court, when asked why he put the 香蕉视频直播渢o be determined香蕉视频直播� line in the documents.
Elphicke香蕉视频直播檚 trial is expected to wrap up this week.
dustin.godfrey@pentictonwesternnews.com
Like us on and follow us on .
