By Glenn Gibson and John Pirie on Posted in Fraud and Insolvency Law,Fraud Prevention,Fraud RecoveryThis 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
By Ahmed Shafey on Posted in Fraud Prevention,Fraud RecoveryIn a narrow 5-4 decision, the Supreme Court of Canada has laid out a new formulation of the “fictitious or non-existing payee” defence under section 20(5) of the Bills of Exchange Act (BEA). The underlying dispute involved an employee who took advantage of weak internal compliance mechanisms to draft a number of fraudulent cheques. The… Continue Reading
By Brendan O'Grady on Posted in Fraud Prevention,Fraud RecoverySummary judgment of an action may only be granted when there is no genuine issue requiring a trial and this can be difficult to prove in fraud cases where credibility is often an important factor. In the recent Ontario Superior Court decision in MacNamara v. 2087850 Ontario Ltd. (Strathcona Construction), 2017 ONSC 499, Justice Akbarali… Continue Reading
By Mark Ellis on Posted in Employment Related Fraud,Fraud PreventionRecently 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,… Continue Reading
By Michael Nowina on Posted in Fraud PreventionAccording to Statistics Canada, 84% of Canadians aged 15 and over, or just under 24 million people, reported making at least one financial donation to a charitable or non-profit organization when the last survey on gift giving was conducted in 2010. With over $10 billion in yearly donations, it is unsurprising that there are those that… Continue Reading
By Cherrine Chow on Posted in Fraud Prevention,Fraud RecoveryPonzi schemes and other fraudulent arrangements that operate on a large scale often involve complex networks of activities, actors, and funds transfers. Given the number of players that may be required to bring about such a scheme, the tort of civil conspiracy provides a potential means for recovery for fraud victims. The elements of civil… Continue Reading
By Ahmed Shafey on Posted in Fraud PreventionThe Federal Court of Appeal’s decision in Condon v. The Queen, 2015 FCA 159 (“Condon“), released July 6, 2015, has significant implications for organizations that have experienced large scale data breaches. The Federal Court of Appeal upheld the decision by the Federal Court to certify a class action lawsuit based on the recently developed tort… Continue Reading
By Stephanie Vaccari on Posted in Fraud Prevention,Misappropriation of IPThe distribution and sale of counterfeit goods in Canada, such as counterfeit banknotes, pharmaceutical products and luxury items, has been a growing threat impacting Canadian businesses and consumers. This prompted the introduction of Bill C-8, the Combating Counterfeit Products Act (the “Act”), which received Royal Assent on December 9, 2014. The Act aims to reduce the sale… Continue Reading
By Matt Saunders on Posted in Fraud PreventionMarch is Fraud Prevention Month in Canada and a number of national and regional initiatives have kicked-off to promote fraud awareness. Federal government agencies, commercial organizations, and non-profit groups have rolled-out campaigns to highlight the impact of fraudulent activities, including:… Continue Reading
By Ahmed Shafey on Posted in Fraud PreventionOn February 3, 2015, the Ontario Securities Commission (the “OSC“) released a staff consultation paper which outlines a proposed framework for an OSC Whistleblower Program. The program seeks to encourage individuals to report serious breaches of Ontario securities law, that would not otherwise come to the OSC’s attention.… Continue Reading
By Michael Nowina on Posted in Fraud Prevention,Fraud RecoveryUnder section 380.1(1) and (1.1) of the Criminal Code, courts are required to consider the following non-exhaustive list of factors as being aggravating circumstances in the context of fraud: significant magnitude, complexity, duration or degree of planning of the fraud; an actual or potential adverse effect on the Canadian economy or financial system, or on… Continue Reading
By Matthew Latella on Posted in Fraud PreventionIn recent months, Baker & McKenzie has represented a number of clients around the world, including in Canada, who have fallen victim to similar but unrelated scams targeting multinational companies with subsidiaries around the globe. The fact patterns are so strikingly similar that we have issued a Global Alert to minimise the risk of other… Continue Reading
By Ahmed Shafey on Posted in Cybersecurity,Fraud Prevention As part of Fraud Prevention Month, the RCMP is rolling out tip sheets to help Canadians protect themselves against an ever-growing number of scams and frauds including a list of “Top 10 Cyber Crime Prevention Tips”. Many of these tip sheets highlight the role of technology in fraudulent schemes and the importance of ensuring… Continue Reading
By Frank Spizzirri on Posted in Fraud and Insolvency Law,Fraud Prevention,Fraud RecoveryHow do you uncover a suspected fraud when you cannot obtain any information from the suspected fraudster in the first place? And what do you do if the suspected fraudster has avoided complying with a court order to produce documents? One under-utilized strategy is to seek to appoint a receiver over the books and records… Continue Reading
By Michael Nowina and Christina Doria on Posted in Fraud Prevention,Investment FraudCharles Ponzi perpetrated the first notorious investment scheme in the early 1900s – after whom the investment scheme was named. Ponzi schemes share a basic feature and red flags usually exist which can help investors avoid becoming victims. In a Ponzi scheme, the perpetrator convinces victims to “invest” money, for the promise of a high or… Continue Reading
