Section 127 of the Securities Act grants to the Capital Markets Tribunal of the Ontario Securities Commission the power to issue a broad range of remedial orders “if in its opinion it is in the public interest” to do so. In this post, we will focus on section 127(1)10, which gives the Tribunal the power […]
Category Archives: Civil Fraud
Court of Appeal Considers Unconscionability in the Context of Mortgage Transactions
We have previously written about the case of Uber Technologies Inc. v. Heller, one of the leading Canadian decisions on the law of unconscionability in contracts. The case set out the legal test to be applied by courts when determining whether a contract should be set aside for being unconscionable. This test was applied recently […]
Court Considers Appeal of Binance Class Action Certification
We previously wrote about the certification of a class action brought on behalf of Canadian investors against an asset trading platform operated by Binance Holdings Limited and its Canadian subsidiaries, Binance Canada Capital Markets Inc. and Binance Canada Holdings Ltd. (collectively, “Binance”). Binance appealed the certification, and the Court of Appeal recently released its decision […]
Stopping Fraud Before It’s Too Late: The Role of Injunctions in Fraud Litigation
Fraud can have devastating consequences for businesses and individuals alike, often resulting in significant financial losses and reputational harm. When fraud is suspected, swift legal action is crucial to prevent further damage. One of the most powerful legal tools available to combat fraud in Ontario is the use of injunctions. These court orders can freeze […]
Understanding Civil Fraud Through the Lens of Arbitration
Fraud is a cornerstone of civil litigation, with far-reaching implications across legal systems and dispute resolution processes. Arbitration, as an alternative to traditional court proceedings, often raises critical questions about how constructive and actual fraud is defined and addressed. The Ontario Court of Appeal’s decision in Campbell v Toronto Standard Condominium Corporation No 2600 (“Campbell”) […]
Civil Fraud in Focus: Lessons From the William Santor Case
The case of William Santor, a Canadian film financier accused of orchestrating a massive fraud through his company, Productivity Media Inc. (PMI), has sent shockwaves through the entertainment and investment industries. With allegations of misappropriating at least $44.5 million in investor funds, the scandal is a stark reminder of how sophisticated schemes can exploit trust […]
When Corporate Fraud Collides With Bankruptcy: Clarifying the Rules of Corporate Attribution
Bankruptcy law in Canada serves two fundamental purposes: equitable distribution of assets among creditors and providing debtors with the opportunity for financial rehabilitation. However, these principles face serious challenges when a corporation’s insolvency results from fraud perpetrated by its leadership. In the landmark case of Aquino v. Bondfield Construction Co., the Supreme Court of Canada […]
The Ethereal Realm of Cryptocurrency and the Spectre of Fraud
The dawn of the cryptocurrency era has ushered in a new paradigm of digital finance characterized by its decentralized architecture, pseudonymous transactions, and immense innovation potential. However, this nascent landscape has also become a fertile breeding ground for fraudsters, who exploit the very attributes that define it. The Elusive Nature of Digital Deception Cryptocurrency fraudsters […]
Punitive Damages in the Context of a Fraudulently Obtained Loan
A recent decision of the Superior Court of Justice is instructive on remedies available to a creditor seeking default judgment on money fraudulently obtained by the debtor. The case of The Bank of Nova Scotia v. Rosario Rosado concerned a professional student line of credit advanced by the Bank of Nova Scotia to the Defendant […]
Canada’s Highest Court Considers Effect of Bankruptcy on Penalties Imposed Under Securities Legislation
Two general purposes underlie the bankruptcy regime set out in the Bankruptcy and Insolvency Act (the “Act”): the equitable distribution of the assets of a bankrupt amongst their creditors and the financial rehabilitation of the bankrupt. The latter purpose is reflected in section 178(2) of the statute, which releases a bankrupt from all claims provable, […]