5 p.m. update: Although his theft of nearly half a million dollars from Algoma Public Health was motivated by "pure greed," a judge agreed Monday not to imprison Jeffrey Holmes for his crimes.

5 p.m. update:

Although his theft of nearly half a million dollars from Algoma Public Health was motivated by "pure greed," a judge agreed Monday not to imprison Jeffrey Holmes for his crimes.

Ontario Court Justice Melanie Dunn accepted a joint Crown and defence submission for a conditional sentence of two years less a day, which the 59-year-old will serve in the community, followed by 18 months probation.

In a five-page written decision, Dunn said she had carefully reviewed the case law provided by the lawyers and had concluded that the proposed sentence "is fit but also one that is just."

Holmes pleaded guilty in April to theft over $5,000 for stealing $434,644 from the health unit while he was the organization's chief financial officer, and breach of trust by a public officer.

The thefts occurred between 2006 and 2013 and involved purchases and cash advances on his corporate credit card.

Dunn cited a number of aggravating and mitigating factors that she had taken into account in reaching her decision.

She listed six aggravating factors, including the breach of trust, the not so "insignificant" amount of the loss to APH, the lengthy period of the thefts, the many transactions, the motivation of "pure greed," and the negative impact on Algoma Health, Holmes' colleagues, fellow employees and the board members.

The judge weighed these against 10 mitigating factors, "most significantly he has made restitution in the amount of $280,000."

Dunn noted Holmes had pleaded guilty avoiding a lengthy and expensive trial, is "genuinely remorseful," is a first-time offender, and has destroyed his reputation in the community.

As well, he has lost his job and will soon lose his designation as a chartered accountant, was co-operative with police and has a history of being involved in numerous charitable activities, she said.

Holmes, a well-known local jazz musician, also sought out counselling to determine why he committed the thefts.

Outside the courtroom, Holmes' lawyers expressed their satisfaction with the sentence, which they said was in accord with other court decisions.

Lindsay Marshall said Holmes' substantial restitution and extreme remorse made a difference.

This is "essentially a jail sentence for the next two years," she said.

Wayne Chorney described his client "as truly remorseful" right from the beginning.

His remorse wasn't fabricated for sentencing, Chorney said, adding this has been hard on Holmes and his family and "very embarrassing."

Chorney called the restitution, paid by Holmes in June, as "very unusual" and "unique" for people convicted of such offences.

"Greed is a harsh word," he said, but conceded "greed depicted precisely what happened" and Holmes believed it was a greedy thing to do.

The defence lawyer reiterated what he had told the judge earlier, that Holmes began stealing because he thought he was entitled to the money because of the long hours he worked and the tasks he had to perform.

Holmes tried it once and it worked, he tried it again and it worked, Chorney said.

During the first year of his sentence, Holmes is under house arrest, and can only leave his home for medical emergencies, for counselling and treatment and to perform community service.

He is permitted to be out on Saturdays between 8 a.m. and 2 p.m. to obtain the necessities of life.

For the second portion of the sentence, he will have a daily curfew from 11 p.m. to 7 a.m.

Holmes can't buy or possess alcohol, and must do 100 hours of community service during the sentence.

As well, he must disclose his conviction to any employer when applying for a job during the sentence and his probation period.

2:32 original story:

An Ontario Court Judge has sentenced Jeffrey Holmes, the one-time Algoma Public Health chief operating officer, who admitted stealing $434,644 from his employer.

Judge Melanie Dunn accepted a joint submission from Crown and defence lawyers that would see Holmes serve no actual time behind bars.

In a hearing earlier this month, the Crown and defence jointly recommend that the 59-year-old Sault Ste. Marie man, who is a well-known local jazz musician, serve no jail time, but instead receive a conditional sentence of two years, less a day, which would be served in the community.

Come back to this story as we update it this afternoon.

(PHOTO: Jeffrey Holmes leaves the Sault Ste. Marie Court House April 23, 2015 after pleading guilty to charges of theft over $5,000 and breach of trust. Kenneth Armstrong/SooToday)