In an unreported judgment Pallotta v. Cengarle, Court file CV-16-56337 released on February 27, 2020, Faieta J. found real estate lawyer Licio Cengarle vicariously liable for his clerk’s mortgage fraud scheme as well as for breach of trust. This case is a cautionary tale for professionals and employers about the need for internal controls.…

David Holden was recently convicted of defrauding Canadian investors in Seaquest Corporation and Seaquest Capital Corporation of more than $54-million in a complex ponzi-scheme. In related civil proceedings our team acted to obtain significant recoveries for some of Holden’s victims. Sadly, this was not the first time that Holden had defrauded investors.…

In the recent decision Anisman v. Drabinsky, 2020 ONSC 1197 Justice Morgan voided a transfer of a $2.625 million Toronto home for the nominal sum of $2 by Garth Drabinsky to his wife as a fraudulent conveyance as against Drabinsky’s former lawyer and other creditors. This summary judgment decision provides important guidance for creditors on how to approach issues relating to discoverability and limitation periods in the context of real property that may have been fraudulently…

In Amphenol Canada Corp v. Sundaram, 2020 ONSC 328 (“Amphenol Canada“), the Ontario Divisional Court confirmed that a prima facie showing of fraud and dissipation in the context of a Mareva injunction may have additional consequences for defendants, including presumed prejudice in terms of that defendant’s ability or inclination to satisfy future cost awards.…

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all charges against SNC-Lavalin Group Inc. and its international marketing arm, SNC-Lavalin International Inc. were withdrawn.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…

In Godfrey v Pioneer, 2019 SCC 42 (“Godfrey“), the Supreme Court of Canada has lowered the bar for certifying price-fixing class actions brought under the federal Competition Act, while also allowing new categories of claimants to participate as class members.…

Ontario has established a new agency to combat fraud. The Serious Fraud Office (the “SFO”), modelled on the UK’s anti-fraud agency of the same name, will place police investigators and fraud prosecutors under one umbrella to ensure the proper expertise and enforcement coordination is applied to cases of high-value fraud in Ontario.…