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 […]
Category Archives: Fraud Litigation
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”) […]
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 […]
Supreme Court of Canada Considers Fraud in the Context of Letters of Credit
We have previously written about letters of credit, which are common to financing transactions and are an essential form of security in the banking world. The Supreme Court of Canada recently revisited the law surrounding such instruments, particularly how fraud can impact their enforceability. The case of Eurobank Ergasias S.A. v. Bombardier Inc. concerned a […]
A Review of the Tort of Conspiracy
When creditors bring claims against corporate debtors, they sometimes face the prospect that the debtor will have insufficient assets to satisfy any resulting judgment. For this reason, creditors will sometimes cast the net of potential defendants as wide as reasonably possible. In some situations, creditors may be able to name a broader group of parties […]
Ontario Court Gives Green Light to Investigate Cryptocurrency Exchange
The cryptocurrency market has yet to recover from its all-time highs, and in the wake of its slowed growth, litigation has arisen amongst a popular cryptocurrency exchange. Binance, one of the world’s largest online cryptocurrency asset trading platforms, has been investigated by the Ontario Securities Commission (“Ontario Securities Commission”) for failing to bring its operations […]
Can Employers Recover Stolen Funds From Employees?
Employee fraud is a form of civil fraud and is a serious offence whereby an employee commits fraud against their employer’s company or organization. Employee fraud can break trust in the employment relationship and be grounds for a “just cause” dismissal. Beyond this, it can cause serious financial consequences for the employer, who may be […]
Court Declines to Grant Interim Relief Staying Investigation Order
Injunctions are powerful legal remedies that can be requested by a party and granted in a vast range of disputes. The purpose of an injunction is to either force a party to do something or prevent them from doing something to preserve assets or evidence. Injunctive relief is often sought in commercial disputes, such as […]