Executive Summary
- Alena Smadych admitted to $684,000 in fraudulent insurance billings over a 10-year period.
- Prosecutors are seeking a 2-3 year prison term, citing a prior 2007 fraud conviction.
- The defense has requested a conditional sentence, emphasizing that full restitution has been made.
- Smadych’s dental practice was investigated after insurers flagged irregular billing spikes.
- A sentencing decision is reserved until January.
A former Calgary dentist faces a potential prison sentence of up to three years after admitting to defrauding five insurance companies of more than $684,000 over the course of a decade. During a sentencing hearing on Friday, Crown prosecutors argued that the scale of the deception and the defendant’s criminal history warranted significant incarceration, while the defense requested a conditional sentence to be served in the community.
Alena Smadych, 55, pleaded guilty to fraud charges earlier this year in connection with her management of All About Family Dental. According to an agreed statement of facts submitted to the court, Smadych engaged in falsified billing practices between 2013 and 2023. While investigators initially identified approximately $125,000 in fraudulent claims submitted to Sun Life and Blue Cross, Smadych subsequently admitted to an additional $558,000 in false billings involving three other insurance providers.
Prosecutor Greg Whiteside told Justice Gord Wong that Smadych holds a previous conviction for fraud from 2007. Although she received a pardon for that offense in 2018, Whiteside argued that the commission of this new crime effectively revives the prior conviction for the purpose of her criminal record. The prosecution is seeking a custodial sentence of two to three years.
Defense lawyer Alain Hepner asked the court to consider a two-year conditional sentence order, which would allow Smadych to serve her penalty under house arrest with strict conditions. Hepner noted that his client has made full restitution for the defrauded amounts. Smadych, who is no longer working as a dentist according to the College of Dental Surgeons of Alberta, addressed the court to express her remorse, stating she was “ashamed” for her profession and family.
The investigation into Smadych’s practice began in 2021 after Sun Life detected irregular billing patterns, including repeated claims for root canals and fillings. Investigators found that clinic billings frequently spiked at the end of calendar years; for instance, on December 24, 2020, the clinic submitted $19,000 in claims for 17 patients with Smadych listed as the sole billing dentist. A pre-sentence report by forensic psychologist Dr. Patrick Baillie noted that Smadych initially deflected responsibility, only fully accepting accountability during a third interview.
Judicial Sentencing Considerations
The sentencing phase in this case underscores the judicial balancing act required in white-collar crime adjudications. Justice Wong must weigh the mitigating factors of a guilty plea and full restitution against the aggravating factors of a decade-long duration and a prior fraud conviction. The decision, expected in January, will likely serve as a precedent regarding the extent to which financial repayment can mitigate custodial time in cases of significant professional fraud.
