In Canada what is the penalty for immigration fraud?

Immigration fraud is a very broad term, it can refer to submitting forged backup documents or putting incorrect information on the forms, getting married for the purpose of immigration only etc.

What exactly did the person you are inquiring for/about do?

They married for citizenship and paid the man a certain sum of money to do this.

Hmm, well I have read that people who arrange this kin of fraud can get a fine up to $250,000 but this is generally for immigration consultants who file multiple fraudulent cases. They may get a fine of $10,000 but I've been reading and a lot of cases just aren't ever taken to court cause they are understaffed when it comes to dealing with frauds.

Call CIC and see what they advise to do to report the incident.

If that is the case thanthe penalty is stripping the person(s) of their PR status. It is called misreperesentation and you may be barred from ever entering into Canada again if they find out. That s the penalty imposed on the applicant and sponsored person.