Canadian Fraud Law

Canadian Fraud Law

Commentary, News and Updates

Fraudulent Conveyance Claim flounders on procedural shores

Glenn GibsonMichael Nowina By Glenn Gibson and Michael Nowina on Posted in Fraud and Insolvency Law, Fraud Recovery

In Esfahani v. Samimi, 2018 ONCA 516  the Ontario Court of Appeal confirmed that a plaintiff pursuing a fraudulent conveyance or preference must recognize that the legal landscapes changes with a bankruptcy and that the effects of a bankruptcy filing cannot be ignored. The unfortunate outcome for the plaintiff, Djalaleddin Esfahani (“Esfahani“), was that an otherwise valid claim to set aside a fraudulent conveyance was dismissed because it was brought outside of the bankruptcy process. Continue Reading

The Competition Act and misleading advertising provisions

Yana ErmakArlan Gates By Yana Ermak and Arlan Gates on Posted in Competition Law

The general prohibition on false or misleading advertising under the Competition Act is somewhat unusual in that it contains two adjudicative regimes, criminal and civil, that can be used to address the same conduct – the making of a materially false or misleading representation to the public for the purpose of promoting one’s product or business interest[1]. Continue Reading

Deferred Prosecution Agreements are coming to Canada. Are you prepared?

Peter MacKayChristopher BurkettJohn Pirie By Peter MacKay, Christopher Burkett and John Pirie on Posted in Investigations & Compliance

Join Baker Mckenzie’s global practitioners on Thursday, June 14 for a Deferred Prosecution Agreement Roundtable to gain important insights on:

  • The impact that Bill C-74 will have on corporate criminal law in Canada;
  • How the Canadian DPA system (which will be known as the Remediation Agreement Regime) will work in practice and how it will impact the Integrity Regime;
  • The critical lessons learned from negotiating DPAs in other jurisdictions;
  • Strategies for self-disclosure and dealing with parallel multinational investigations, multiple enforcement agencies, and global settlement negotiations; and
  • Designing compliance programs and conducting effective internal investigations to ensure your company qualifies for a DPA.

Continue Reading

When Should a Defendant Bring a Motion for Summary Judgment in Fraud Proceedings?

Glenn GibsonJohn Pirie By Glenn Gibson and John Pirie on Posted in Fraud and Insolvency Law, Fraud Prevention, Fraud Recovery

This is our third and final post on the complex fraud carried out by Norma and Ronald Walton, and the Ontario Court of Appeal decisions arising from their scheme. In our earlier posts, we focused on the use of a constructive trust as a remedy for breach of fiduciary duty and third party fraud liability. In this post, we discuss the risk that comes with bringing a summary judgment motion in the context of a complex fraud action. Continue Reading

Employee’s Silence about Fraud Leads to $20 Million Civil Judgment for Employer

Jennifer Bernardo By Jennifer Bernardo on Posted in Employment Related Fraud

A recent decision from the Ontario Superior Court demonstrates the overlap between civil and criminal findings, and how an employer can use a criminal verdict to recover additional damages in a civil claim. In Atlas Copco Canada Inc. v. David Hillier 2018 ONSC 1558, rendered March 7, 2018, an employer “piggybacked” off of a criminal court decision to recover an additional $20 million from an ex-senior employee who accepted payments and benefits in return for allowing a fraud to continue.

This decision highlights an employer’s possible options for fraud recovery, as well as the steep costs for employees of participating in fraudulent schemes. Continue Reading