The victim of a mortgage fraud says he's happy that Sherwood Park resident James Steinhubl is back behind bars.

"He reminded me of a snake oil salesman," said Dale Miller, a councillor with the Village of Warburg, southwest of Edmonton. "He was a smooth talker. He could convince you to go ahead and buy anything if he put his mind to it."

This week an appeal court ordered Steinhubl to serve an additional 2½ years in prison for defrauding investors in a $4 million scheme 10 years ago.

Between 2000 and 2002, Steinhubl duped investors, or "straw buyers," into providing personal and credit information to buy overvalued properties, then defaulted on the mortages, leaving the investors holding the bag.

"He just had a way with the words and the numbers and stuff that made you think it was a good deal," said Miller, who said he lost much more than the $10,000 he had invested in the scam.

Miller thought he had bought a house as well, when two other people also claimed ownership.

He walked away from the deal and tried to declare bankruptcy, but was refused because of the fraud case, he said.

Miller also could not get a mortgage when he tried to buy a house again and still cannot get a loan to buy a new car because of what the case did to his credit rating, he said.

Miller hopes returning to jail will help Steinhubl to reform.

"I don't care for the man," he said. "I don't want to see him again. I hope that he gets the help that he needs."

However in sending Steinhubl back to jail, a panel of judges noted his lack of remorse, saying that personal deterrence is still needed in the case.

With files from CBC's James Hees