South Okanagan woman headed to jail after stealing $350k through provincial welfare fraud

$350k welfare fraudster

A South Okanagan woman who stole more than $350,000 through welfare schemes will spend 2.5 years behind bars.

Norlene White, 66, appeared in B.C. Supreme Court in Penticton on Friday to hear her sentence from Judge Christopher Giaschi, who decided time in prison was warranted in what he called an "unprecedented" case of welfare fraud.

White had previously been found guilty by a jury of multiple counts related to theft and fraud in December 2024.

Almost two decades of fraud

Court heard Friday that over 17 years, from 2004 to 2022, White defrauded the Ministry of Social Development and Poverty out of $351,538.99 in multiple different ways.

During that period of time, White was herself a client of the ministry, collecting benefits, while also collecting benefits on behalf of two of her sisters, who had physical and cognitive disabilities and for whom she was the caregiver.

During the trial, the jury found that White misrepresented her sisters' travel needs for medical care, billing the ministry for approximately $72,000 in fraudulent travel fees after claiming that approved special vehicles were required, then not actually using them.

She also fabricated documents to receive money for alleged relocation fees throughout communities in the South Okanagan, claiming evictions and vacate orders. The jury failed to find evidence of her moves or real proof of necessity to move, but she received thousands of dollars.

White's most lucrative fraud was failing to properly report her household's accurate assets when she applied for benefits from the ministry.

She had a common-law husband the whole time, referenced here as "D.J.," who was also referred to as just a landlord at times during the moving fraud schemes and was reportedly involved in the fabricated documents.

"I found the evidence was overwhelming that the defendant and [D.J.] were in a common law relationship during the entire period covered by the indictment,” said Judge Giaschi.

“I further found that during the entire period, the defendant and [D.J.] either individually or jointly owned two real properties, and that the family assets of the defendant had always exceeded eligibility requirements of the ministry [for benefits].”

White was given $216,990.74 in benefits from the government during that time.

No record, no major mental health issues

White has no criminal record and is currently unemployed, and collects an old age security pension of $1,700 per month.

A doctor who conducted a psychiatric report before sentencing did not diagnose White with any major mental health or substance abuse issue, concluding these were not likely factors in the commission of the crimes.

However, the report notes "some traits" of narcissistic personality disorder, without going so far as to formally diagnose her.

"She feels entitled to special treatment, including special compensation from the government," reads a portion of the report read in court.

The doctor recommended that her financial transactions be supervised to “ensure no fraudulent activity is occurring related to her old age security payments,” and also recommended counselling to “improve her ability to cope with stressful situations.”

Multiple family members, friends and community medical professionals involved with White’s sisters provided glowing letters of support to the court, praising her compassionate attention to the care of her sisters.

Not convinced

The Crown sought a jail sentence of 2.5 years while White's defence counsel sought a jail sentence to be served in the community.

After a lengthy discussion of case law, Judge Giaschi called the amount and length of the fraud “unprecedented” in Canadian welfare fraud cases that he had consulted.

He decried White for abusing her position of control over her cognitively and physically limited sisters, her abuse of the welfare system — which is based in part on trust — and the clear planning and intention behind the fraud.

He also dismissed the defence’s argument that the crime was not motivated by greed.

“The defendant's motivation was to extract money from the ministry for herself or her sisters, to which they were not entitled,” Giaschi said.

“Her motivation was greed.”

He also noted she is in denial of her wrongdoing.

"The defendant continues to deny her commission of the offences and has not expressed any remorse for what she has done. She has absolutely no insight into her crimes and to the damages they have caused," he said.

Judge Giaschi sentenced White to 2.5 years in prison, the Crown's earlier suggestion.

"Frankly, I consider that the Crown's position is quite generous to the accused," he added.

This will be followed by a period of probation.

White will also have to pay back the roughly $350K to provincial taxpayer coffers, despite White's defence claiming this would bankrupt her.

"I do not accept this. The very nature of the offences of which she has been convicted means that her assets are hidden and her financial means is highly clear," Giaschi said.

White was ordered to pay the full amount by April 2026.