Canadian Fraud Law

Canadian Fraud Law

Commentary, News and Updates

When should a fraudulent conveyance action be brought?

Ahmed Shafey Posted in Fraud Recovery

Squares threeIn 2014, we reported on the Ontario Superior Court of Justice’s decision in Indcondo Building Corporation v. Sloan (“Indcondo“), which strengthened the position of plaintiffs seeking to set aside fraudulent conveyances in Ontario. In the Indcondo case, Mr. Justice Penny analyzed the substantive test for establishing fraudulent conveyance and in particular the demonstration of whether a defendant had the requisite intent to defeat creditors or others.  Continue Reading

Should Canada follow the UK, US or Australian deferred prosecution model?

Peter MacKayChristopher BurkettHenry Garfield Posted in Investigations & Compliance

As the Canadian government contemplates further measures to combat financial crime, there is an increasing debate over whether Canada should follow the US, UK or the proposed Australian model by introducing a deferred prosecution agreement (DPA) regime to help combat corporate wrongdoing, promote ethical business conduct, and encourage corporate self-reporting to and cooperation with Canadian government authorities.

Comparing the US, UK and the proposed Australian model for deferred prosecution agreements, Baker McKenzie’s Peter MacKay, Chris Burkett and Henry Garfield make the case for the DPA system Canada should adopt in Global Investigations Review’s latest edition.

Mareva Injunctions – Ontario Court of Appeal Signals a More Flexible Test for Granting Worldwide Mareva Injunctions

Sarah PetersenMichael Nowina Posted in Injunctions & Emergency Relief

Square Rect - red and greyThe decision in SFC Litigation Trust (Trustee of) v. Chan, 2017 ONSC 1815 represents a step toward a more flexible approach when our courts are asked to consider whether a Mareva injunction should be granted. In this case, the appellant, Mr. Chan, the former Chief Executive Officer of Sino-Forest Corporation (“SFC”), appealed an order confirming a Worldwide Mareva injunction that had been granted against him, ex parte.

SFC was a Canadian corporation and had an office in Ontario, a head office in Hong Kong, and assets predominately located in China. It carried out a sale process through the Companies’ Creditors Arrangement Act, R.S.C. 1985 c. C-36 (the “CCAA”), which ultimately failed.  SFC then applied under the CCAA for an order approving a plan of compromise and reorganization, which was subsequently sanctioned.  A Litigation Trust was assigned the litigation rights of SFC. Continue Reading

Jagged Little Pill: What “You Oughta Know” Regarding Agency Fraud

Mark Ellis Posted in Employment Related Fraud, Fraud Prevention

Recently Canadian singer Alanis Morissette became the latest well-publicized victim of fraud at the hands of one she employed and trusted: http://www.bbc.co.uk/news/amp/36316327. She joins a long list of celebrities who have suffered fraud at the hands of those employed to trust, amongst them the Beatles, Beyoncé, David Bowie, Billy Joel, Bob Dylan, Leonard Cohen, Elvis, the Rolling Stones. Continue Reading

No trial required: Summary Judgment granted in fraud case

Sarah Petersen Posted in Fraud Recovery, Injunctions & Emergency Relief

In DBDC Spadina Ltd et al v Norma Walton et al, Justice Newbould of the Ontario Superior Court recently granted a motion for summary judgment on the basis that there was sufficient evidence to justify a finding of fraud. The decision reflects the guidance set out in the landmark Supreme Court Canada decision Hyrniak v. Mauldin, 2014 SCC 7, which recognized that the adjudicative process can be fair and just without requiring the expense and delay of a trial. Continue Reading