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
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Supreme Court of Canada Shifts the Risks of Cheque Fraud
In 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
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Documents Prove Fraud in Summary Judgment Decision
Summary 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 granted summary judgment finding both fraud and grounds to pierce the corporate veil of a corporate defendant. This case demonstrates how liability for even the most serious causes of action can be established by way of summary judgment where a full evidentiary record allows the Court to find the necessary facts, apply the law, and determine that there is no genuine issue for trial.
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Jagged Little Pill: What “You Oughta Know” Regarding Agency Fraud
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.
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Court rules “culpability is not a finite” in charitable donation scheme
According 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 seek to take advantage of Canadians’ spirit of giving. In a recent sentencing decision, R v Raza, 2016 BCSC 1030, the British Columbia Supreme Court sentenced two brothers, Fareed Raza and Saheem Raza, to over four (4) years for their roles in orchestrating a charitable donation scheme.
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Using the tort of civil conspiracy
Ponzi 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 conspiracy: Simple motive or unlawful means?
As outlined in the Supreme Court of Canada’ decision in Canada Cement LaFarge Ltd. v. British Columbia Lightweight Aggregate Ltd. civil conspiracy in Canada is comprised of two related but distinct categories. The first category is the “lawful means” or “simple motive” conspiracy, and the second is the “unlawful means” or “unlawful conduct” conspiracy.
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The Widening Scope of Data Breach Class Actions
The 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 of intrusion upon seclusion (i.e. breach of privacy) and breach of contract and warranty. However, the Federal Court of Appeal also expanded the certification to include claims of negligence and breach of confidence. The lower court had found the failure to allege specific damages arising from the data breach to be fatal to the negligence and breach of confidence claims, but the Federal Court of Appeal reversed the lower court on this point.
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Fighting importation of counterfeit products into Canada
The 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 of counterfeit goods and bring Canada in line with international standards in trying to stop counterfeit products from crossing international borders.
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March is fraud prevention month in Canada
March 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:
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The OSC Proposes a Framework for a New Whistleblower Program
On 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.