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In a widely publicized move, on December 18, 2019, SNC-Lavalin Construction Inc. pleaded guilty to fraud over five thousand dollars. The guilty plea was the result of protracted settlement discussions between SNC-Lavalin and the Crown.

As part of SNC-Lavalin’s plea deal, all charges against SNC-Lavalin Group Inc. and its international marketing arm, SNC-Lavalin International Inc. were withdrawn. SNC-Lavalin Construction will pay a fine of $280 million, payable in instalments over the next five years. The deal also includes a recently released probation order that requires SNC-Lavalin Construction to cause SNC-Lavalin Group to strengthen its compliance program, record keeping, and internal control standards.
Continue Reading SNC-Lavalin Probation Order Issued in Connection with Guilty Plea

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 appellants, HSBC would never have made the loan and therefore the bank deserved damages equal to 100% of its loss on the loan. On appeal, the appellants argued that their rights under Canada’s Charter of Rights and Freedoms had been violated during the trial and that the trial should never have proceeded because an adjournment should have been granted.
Continue Reading Court of Appeal upholds trial decision awarding HSBC judgments in fraud for over $10.3 million

Under 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 investor confidence;
  • large numbers of victims, particularly if the fraud had a significant impact due to the victims’ personal circumstances;
  • failure to comply with applicable professional standards;
  • concealment or destruction of documents related to the fraud; and
  • whether the total value of fraud exceeds one million dollars.
    Continue Reading Imprisonment for Ponzi Schemes: How long is long enough?

On May 30, 2014, Mr. Justice Richard Danyliuk of the Saskatchewan Queen’s Bench sentenced Ronald Fast to seven years in prison for fraud and ordered him to pay restitution of $16.7 million. Fast’s daughter, Danielle Fast-Carlson, was sentenced to 30 months in prison and ordered to pay $1 million in restitution arising out of the same circumstances.
Continue Reading Conviction in investment fraud case leads to jail time for father and daughter

In October 2011, the Ontario Securities Commission (“OSC“) raised the concept of offering no-contest settlements of the sort commonly employed by the US Securities and Exchange Commission (“SEC“). On March 11th of this year, after receiving some sharply divided feedback in months of public hearings, the OSC announced that it was moving forward with the introduction of a policy that would permit settlement of enforcement proceedings without requiring an admission by the respondent of misconduct (no-contest settlements). The OSC has emphasized that the deployment of this policy will only be available in a narrow set of circumstances. In the meantime, the debate over whether such a policy can achieve its objectives of expedience and efficient resource allocation while at the same time avoiding the risk of letting wrongdoers off the hook, has yet to be resolved.

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Continue Reading The OSC’s introduction of no-contest settlement proceedings

Source: gizmodo.com

The Ontario Securities Commission (OSC) has begun discussions with legislators and law enforcement agencies in an effort to expand its powers to include wiretapping rights with respect to parties under investigation.

As the country’s largest and most influential securities regulator, the OSC’s policies and decisions impact the majority of brokerages, mutual funds, and pension funds in the country.  In recent years the OSC has placed emphasis on the need for more comprehensive anti-fraud and law enforcement strategies.
Continue Reading Provincial securities regulator seeks expanded powers to combat fraud and insider trading

The RCMP’s Greater Toronto Area Financial Crime team has arrested and charged six people in an alleged fraudulent investment scheme. The RCMP has reported that the alleged fraud worked by enticing investors to purchase business tax losses valued far in excess of their investments. The companies used by the accused included: Integrated Business Concepts (IBC), Synergy Group 2000, Cason Global Wealth Association (CGWA) and IBCA 2009.
Continue Reading RCMP arrest six in alleged investment fraud