Wednesday, March 19, 2014

Galbraith gets seven prison years

Arlan Galbraith has been sentenced to seven years in prison for fraud connected with the bankruptcy of his Pigeon King International Inc. business in Waterloo.

Justice G.E. Taylor said “Galbraith refuses to admit he did anything wrong” or to apologize to hundreds of investors who lost an estimated $20 million.

Galbraith sold breeding pairs of pigeons to investors, promising to buy back offspring at highly-profitable prices. Hundreds bought pigeons from him, including many Old Order Mennonites and Amish in the Waterloo Region, then across Ontario and into Pennsylvania, Ohio and Iowa.

A Hutterite community in Western Canada invested about $1 million.

Iowa stepped in and stopped the company, describing it as a pyramid scheme. Then investigations began in Ontario and other states and Galbraith declared bankruptcy.