Canadian Fraud Law

Canadian Fraud Law

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Fraud and Insolvency Law

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Courts give the green light for fraud-based class actions in Canadian insolvency proceedings

Posted in Fraud and Insolvency Law
Both of Canada’s primary insolvency statutes, the Bankruptcy and Insolvency Act (“BIA”) and the Companies’ Creditors Arrangement Act (“CCAA”) provide for an automatic stay of all legal proceedings when an insolvent debtor files for or seeks insolvency protection. The purpose of the stay is to provide breathing space to a debtor attempting to restructure its… Continue Reading

Court of Appeal upholds trial decision awarding HSBC judgments in fraud for over $10.3 million

Posted in Fraud and Insolvency Law
In Turbo Logistics Canada Inc. v. HSBC Bank Canada, Baker & McKenzie’s litigation team was successful in upholding at the Ontario Court of Appeal, the trial decision awarding HSBC judgments in fraud for over $10.3 million dollars. At trial, Madam Justice Ruth Mesbur accepted the argument that “but for” the false statements made by the… Continue Reading

Bankrupt’s right to assert solicitor-client privilege is not absolute

Posted in Fraud and Insolvency Law
In Wong v. Luu, the British Columbia Court of Appeal upheld an order requiring the production of a redacted trust ledger to the bankruptcy trustees for Luu Hung Viet Derrick (“Luu”) on the grounds that the trust ledger was not presumptively privileged and that production would not violate the bankrupt’s right to communicate in confidence… Continue Reading

Ontario’s Highest Court affirms the concept of Investigative Receiverships, but with note of caution

Posted in Fraud and Insolvency Law
In Akagi v. Synergy Group (2000) Inc. (“Akagi“), the Ontario Court of Appeal set aside a series of ex parte orders made by Toronto’s Commercial List Court granting broad investigative powers to a court-appointed receiver.  The receiver had been empowered under section 101 of the Courts of Justice Act which gives the court powers to make… Continue Reading

Court approves gold-plated releases despite extensive fraud allegations

Posted in Fraud and Insolvency Law
Our team acted for one of the parties in Labourers’ Pension Fund of Central and Eastern Canada v. Sino-Forest Corporation, where Justice Morawetz of the Ontario Superior Court of Justice approved Ernst & Young LLP’s $117 million settlement relating to class action lawsuits commenced by jilted investors following the downfall of former stock market darling, Sino-Forest Corporation.  The… Continue Reading

Attempt to thwart a previous judgment through a related corporate entity found to be preference under the Assignment and Preferences Act

Posted in Fraud and Insolvency Law, Fraud Recovery
In Wolf v Anstett, 2012 ONSC 3220, a creditor used section 5 of the Assignment and Preferences Act (the Ontario provincial legislation which may be applied to set aside transactions made by an insolvent person or a “person in contemplation of insolvency”, with an intent to give an unjust preference to a creditor) and Rule… Continue Reading

How should a Court divide a shortfall of money among victims of a Ponzi Scheme

Posted in Fraud and Insolvency Law, Fraud Recovery, Investment Fraud
Dividing up a shortfall from a Ponzi scheme was first posed before the United States Supreme Court in 1924. The infamous case of Cunningham v. Brown dealt with the original Ponzi scheme of Charles Ponzi and distributing remaining funds back to victims when his investment scheme was finally unravelled, but left victims with only a fraction… Continue Reading