Canadian Fraud Law

Canadian Fraud Law

Commentary, News and Updates

Fraud and Insolvency Law

Subscribe to Fraud and Insolvency Law RSS Feed

Fraudulent Conveyance Claim flounders on procedural shores

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… Continue Reading

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

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.… Continue Reading

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

Insolvency law in Canada: A primer for practitioners

Posted in Fraud and Insolvency Law
This book provides a full introduction to the judicial, regulatory and legislative frameworks that characterize Canada’s legal system, and touches on the major bankruptcy and insolvency themes—bankruptcy, restructurings, receiverships and selected topics—that cross all types of insolvency proceedings.This book is available for download here.… Continue Reading