MONTREAL - White collar criminals who commit financial fraud now face tougher sentences in Canada, though Quebec

Federal Justice Minister Rob Nicholson was in Montreal Tuesday to announce that part of the government's 'tough-on-crime' legislation was now in effect.

Bill C-21 has become law, and that means mandatory two-year prison sentences for those convicted of fraud for more than $1,000,000.

"We are here to send a message to those who commit fraud: you will now face tougher sentences," said Nicholson.

Judges will also be able to consider aggravating factors when delivering a sentence, including the age of the victims and how much money was stolen.

In recent years several high-profile fraud cases have been committed in Montreal, including the Mount Real scandal, the Norbourg fraud, and a Ponzi scheme run by Earl Jones.

Victims of West Island fraudster Earl Jones said they were pleased with the news.

"It's a welcome announcement after over two and a half years of struggling for victims of white collar crime, to actually see this law take force," said Joey Davis, whose parents were swindled by Jones.

The law also prevents those convicted of financial fraud from ever working in the field again.

Quebec opposes footing the bill

Meantime, Quebec is balking at paying the costs associated with the federal government's new crime bill, joining other provincial and opposition politicians worried about the tab for expanding the prison system.

Justice Minister Jean-Marc Fournier made a passionate appeal for a "time-out" on Bill C-10 at a Commons committee. Fournier told MPs that the bill would actually lead to more recidivism because it did not focus enough on the rehabilitation and reintegration of criminals.

He estimated that the proposed legislation, which includes more mandatory minimum sentences, would cost Quebec hundreds of millions for new prisons and operational costs.

"I'm going to tell you, red light, we're not going to pay them, is that clear enough? We won't pay them," Fournier said. "If the federal government is convinced that it is an efficient law in terms of public safety, so then free up the budgets to help the provinces, especially those who say it won't be case."

Fournier did not explain how Quebec would force Ottawa to foot the bill. Courts would be obliged to obey changes to the Criminal Code.

Fournier noted that Quebec has the lowest crime rates in the country and a criminal justice system that has been studied by other countries. He said measures in C-10 on youth crime had the overall effect of treating more young offenders as adults, something Quebec is completely opposed to.

"Focusing all the energy on imprisonment can only be a short-term, superficial, soft-on-crime solution," Fournier said.

Prime Minister Stephen Harper's government has estimated the cost of the omnibus bill, with its nine distinct areas, would cost $78.5 million over five years, but hasn't estimated how much the provinces will have to foot. Parliamentary budget officer Kevin Page, who is coming up with his own estimate this month, has said the government's figure included no methodology or supporting information.

Justice Minister Rob Nicholson said the provinces have been well aware of the direction the government was taking, as many of the measures have been in the federal legislative pipeline for some time.

He suggested that they would be able to absorb the costs associated with the bill with the funds they get from the Canada Social Transfer.

"I note, in the last budget, an over $2.4 billion increase here and I know this will be very helpful to the provinces who have for the most part the responsibility of the administration of justice," Nicholson said Tuesday in Montreal.

"I'm, of course, a supporter of the increases that I've seen over the years of transfers to the provinces. And I think that's important."

With a report from The Canadian Press