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Compulsive gambler sentenced for cheque fraud
A convicted Winnipeg con artist has been sentenced to three years in prison following his latest brush with the law.
James Cotton, 35, told court Tuesday he once saw himself as the "second coming" of Frank Abagnale Jr., the notorious U.S. fraudster who was the basis for the movie Catch Me If You Can.
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He pleaded guilty to several charges of fraud and possession of stolen goods in which he pocketed more than $22,000 of other people’s money in 2009 and 2010. He must repay the stolen cash as part of his sentence.
Cotton was working as the treasurer of Gamblers Anonymous in Winnipeg when he began a cheque-kiting scam that saw him write numerous cheques out to himself, his former wife and even his grandmother. At the same time, Cotton came into possession of 20 stolen cheques that had been written out to various local residents by government agencies. Cotton forged his signature on them and deposited them in his own account.
Cotton said Tuesday he was trying to live a glamorous lifestyle while also battling addiction issues and a gambling problem.
He described a troubled upbringing on a Manitoba farm which included losing his mother to mental illness, being raised by an abusive father and grandfather, exposure to chemicals and being bullied repeatedly at school. There have also been his own struggles with depression which had him ready to jump off a city bridge just a couple years ago.
Cotton says he also began acting out in "manic" ways which included giving thousands of dollars away to strangers and politicians and destroying his own marriage and relationship with a young daughter.
Cotton has a troubling history with the legal system. In 2010, he was fined $40,000 and given two years of probation after pleading guilty to income tax evasion. Court heard that Cotton set up a website called "stormysurf.ca" and told investors they could make 150 per cent returns on their investment within 10 days. He used the proceeds from the website to build a swanky home in Matlock and paid more than $90,000 for two new vehicles, but never declared income from his web business. The Canada Revenue Agency was tipped off to Cotton’s Internet money-making venture by the RCMP.
Cotton also has several prior convictions for fraud, theft and uttering forged documents from the late 1990s.
History
Updated on Tuesday, August 14, 2012 at 3:49 PM CDT: corrects typo
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