Canadian National Sentenced for Multi-Million Dollar Bankruptcy Fraud
Defendant fled to Canada on snowmobile in 2005 and remained a fugitive for 10 years
BOSTON – A Canadian man was sentenced today in federal court in Worcester for concealing $3–$4 million in his bankruptcy filings.
Cyril Gordon Lunn, 69, formerly of Pepperell, Mass., was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison and restitution of $6,339. Upon the completion of his sentence, Lunn will face deportation hearings. In January 2017, Lunn pleaded guilty to concealing assets from his bankruptcy creditors and making a false statement under the penalty of perjury in one of his bankruptcy schedules.
From 1985 until 2001, Lunn was the owner of CY Realty Corporation, a construction and land development business in Pepperell. From 1998 to September 2001, Lunn transferred a variety of assets belonging to CY Realty and himself, including $3-$4 million in cash, from the United States to Canada, where he deposited some or all of the funds into safe deposit boxes. In the fall of 2001, Lunn filed for bankruptcy for CY Realty and himself; however, he failed to disclose in either bankruptcy case the asset transfers, including the millions in cash. In addition, Lunn made a false statement in one of his bankruptcy filings by stating that he had closed all safe deposit boxes by September 2001, when in fact, he had failed to disclose a safe deposit box that he had opened at the Granite Bank in New Hampshire, and which he continued to access after the bankruptcy filing.
Lunn’s actions were discovered after he testified about the asset transfers during a 2004 Canadian civil lawsuit. In March 2005, Lunn rented a snowmobile in Maine and fled across the border into Canada where he remained a fugitive until he was extradited from Canada in 2016.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received assistance from the U.S. Trustee’s Office in Boston and Worcester. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit.