Fraud and embezzlement are among the most serious breaches of trust that can occur within a corporation. When corporate insiders, such as directors, officers, or controlling shareholders, engage in misconduct that harms the corporation itself, traditional remedies available to shareholders may not be sufficient. In such cases, derivative litigation can serve as a powerful legal […]
Category Archives: Fraud Litigation
Ponzi Schemes in Canada: How Ontario Investors Can Recover Their Losses
Ponzi schemes are among the most deceptive and damaging forms of investment fraud. Named after Charles Ponzi, who notoriously defrauded investors in the early 20th century, these schemes continue to surface across Canada, including Ontario. Investors are promised consistent, above-average returns, but in reality, the money from new investors is used to pay earlier participants, […]
Landmark Decision on Securities & Investor Fraud in Ontario Real Estate
In a recent decision that underscores the seriousness with which Ontario’s securities regulators and courts treat investor fraud, the Ontario Divisional Court dismissed an appeal by Jiubin Feng and CIM International Group Inc. (CIM) from significant sanctions imposed by the Ontario Securities Commission’s Capital Markets Tribunal. The case—Feng v. Ontario Securities Commission, 2025 ONSC 2268—involved […]
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”) […]
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 […]