Whitehorse residents Laura Ann Eby, 38, and Cary Melvin Goodman, 37, have received 15-month conditional sentences for convictions centred around fraudulent loans.

The two were sentenced in Yukon Supreme Court late Tuesday afternoon.

Eby and Goodman pleaded guilty to fraud, forgery and a breach of trust during an appearance in court last week.

The two loans in question, totalling $318,575, were issued by Eby while she was working as a program manager for the Yukon Housing Corp (YHC).

One loan was issued under the YHC's Home Completion Program while the other was part of the Home Ownership Program.

The Home Completion Program loan was used to take out a mortgage on a property at 1905 Centennial St., which is next to Goody's Gas, co-owned by Goodman.

The other loan was put against a property that did not actually exist and administered through what Justice Ron Veale referred to as a 'complex' scheme. It included misleading a third party and using her bank account to deposit the money and signed blank cheques to access the funds.

Both Crown prosecutor Peter Chisolm and defence attorney Ed Horembala suggested a conditional sentence for the accused.

During Tuesday's sentencing, Veale agreed a conditional sentence was permissible. He said the two had accepted responsibility for their actions immediately after being found out, and were making repayments before being charged.

As well, said Veale, they have provided security to ensure the remainder of the loans continue to be paid off, have experienced a two-year delay in being charged at the fault of the RCMP and they pleaded guilty, which saved taxpayers money that could have been spent on a long trial.

However, Veale included a restitution clause and house arrest in the sentence that Horembala had fought against.

The fundamental purpose of sentencing is to deter, provide reparation to the community and to ensure the offenders take responsibility for their actions, Veale said.

A house arrest will ensure the actions of the accused are properly denounced, said Veale. It will also mean that if they breach their sentences, they can be brought back before the court and possibly be incarcerated.

The restitution order will also further ensure Eby and Goodman continue to repay the remaining principal and interest on the loans, he added. If they do miss a payment, there would be more than just merely civil consequences, and again they could be forced to appear in court.

The conditional sentence requires Eby and Goodman to remain in their home, but they may get permission to leave the premise for the purpose of work, study or seeking employment.

They may also leave the house for counselling, two hours a week of shopping, church or religious services, five hours a week of exercise, Christmas Eve, Christmas Day, New Year's Eve, New Year's Day and their children's extracurricular activities with the permission of their conditional sentence supervisor.

During their sentence, they will also be required to keep the peace, appear before the court when called, meet with their conditional sentence supervisor, remain within the Yukon and notify officials of any changes of name, address or employment.

The duo must reside at an approved residence and remain inside it, and be able to answer their front door or telephone to confirm their presence.

Their homes are not allowed to have alcohol or drugs on the premise, nor are they allowed to consume either.

Inspection of their homes, urine and breath samples can be requested at any time to confirm they are meeting this clause in their sentence.

Eby and Goodman will be required to continue to pay off their loan at increments of $1,111.39 per month.

The loan for the Centennial Street property was paid off in September 2003. However, the remainder of the second loan still needs to be paid for.

The two will also be required to complete 120 hours of community service prior to the end of their sentence and pay $100 in fines.

Goodman co-owns Yukon Appliances Ltd. and Goody's Gas in Porter Creek. Eby is related to Goodman by marriage and also did some work for him.

She became aware Goodman was experiencing financial difficulties related to the cost of building Goody's and required an infusion of capital if his business was to survive. This resulted in an agreement between the two of them that a falsified application would be submitted to the YHC to receive a mortgage. The second falsified loan was then meant to help pay off Goodman's creditors.

The RCMP began to investigate the matter in August 2002 after having received a complaint from the YHC.

Both Eby and Goodman voluntarily provided statements to the RCMP on Aug. 14 and Aug. 22, 2002, respectively.

Eby was later fired from the YHC on Aug. 16 and sent a letter apologizing for her illegal activities.

After the fraudulent loans were received by Goodman, payments were made against them and they were in good standing. After the accused were found out, they negotiated a repayment schedule with the YHC and paid the corporation's legal fees.

Veale indicated that in a small community, like the Yukon, the social stigma attached to Eby's and Goodman's crimes will have a longer and more lasting impact than any sentence.