Data breaches have been making headlines in Canada for a few years, and millions of people have had their data exposed to potential bad actors through breaches of various company databases, from medical labs to telecom companies. Lifelabs, a national lab that performs medical tests on patients across Canada, had its database breached in 2019. […]
Category Archives: Fraud Litigation
Cannabis Company Facing Class Action & Fraud Charges
One of the benefits of incorporating a business is the corporation becomes an entity unto itself, meaning the officers and directors are generally shielded from personal liability should something go wrong. However, this isn’t always the case, depending on the specific issue. As demonstrated by the ongoing trials and tribulations faced by an Ontario-based cannabis […]
March is Fraud Prevention Month
March is Fraud Prevention Month in Canada, with the federal Competition Bureau creating a number of targeted initiatives to ensure Canadians are aware of best practices to prevent a number of types of frauds and scams. As highlighted in a press release from the Bureau, our increasing dependency on digital communication has only increased our […]
An Employer’s Vicarious Liability for Employee Fraud
Employee fraud most commonly occurs when an employee commits fraud against their own employer. For example, an employee might use a corporate credit card for personal expenses or submit unearned overtime hours for payment. However, there are some cases where an employee might use their position with their employer to commit fraud against a third […]
The Anti-Deprivation Rule Pt. 2: SCC Confirms Test
Last week we visited the primary legal authorities in Ontario on fraud in the event of a bankruptcy, and the anti-deprivation rule. Recently the Supreme Court of Canada (SCC), in Chandos Construction Ltd. v. Deloitte Restructuring Inc., 2020, confirmed the reasoning of those cases. Did an Insolvency Penalty Clause Contradict the Anti-Deprivation Rule? A general […]
The Anti-Deprivation Rule, Part 1: Fraud in Bankruptcy
Protecting or preserving assets during a time of insolvency is a natural temptation of debtors. Some even take a proactive approach and design contractual terms that aim to do much the same should insolvency ever arise in the future. However, when such terms are exercised, they run into possibly infringing the “anti-deprivation” rule. What is […]
“Knowing Assistance” & “Knowing Receipt” in the Fraud of a Fiduciary
A fiduciary’s responsibilities or duties are both ethical and legal in nature. The duty arises when a person (principal) willingly accepts and undertakes to enter into a fiduciary relationship on behalf of another party (the equitable owner) in relation to some beneficial interest. At that point the principal is required to act in the best […]
Fraud and Constructive (Equitable) Fraud
The fundamental core of a finding of fraud is the moral turpitude of the defendant. We base liability for fraud or deceit upon the idea that to lie or to deceive are morally wrong acts. Such acts, therefore, merit legal sanctions when they result in suffering by the victim. But there are also situations where fraud […]
The Association of Certified Fraud Examiners
Our firm has written repeatedly of instances of fraud affecting businesses in Canada, whether by external fraudsters or internal employees. The Insurance Bureau of Canada reports that fraudulent activity costs Candian businesses, including large corporations, small companies and non-profits, millions of dollars per year. Sadly, many fraudsters are even using the current health crisis related […]
Fraud Allegations & The Calculation of Costs
When a plaintiff alleges fraud and subsequently fails to sufficiently prove the allegations in court, the defence will invariably ask for increased costs. The common law in Canada is clear that where a plaintiff alleges a defendant has engaged in deceit, the court may order increased costs against the plaintiff when those claims are not […]