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Enforcing Foreign Judgments in Canada for Fraud Victims

It is well known internationally that the Canadian Criminal Courts are soft on fraud and financial crimes and accordingly fraudsters seek haven in Canada to perpetrate their frauds. Only frauds over $1M in value have mandatory minimum prison sentences. Part of the reason for Canada’s lax sentencing of financial crimes is because it costs Canadian taxpayers over $100,000 a year to house inmates in Canadian prisons. Other reasons why frauds …Read More

Lessons for Fraud Victims from the Madoff Employee Trial

We have blogged in the past on recovery for fraud victims from the professionals that a fraudster uses to perpetrate his fraud: see our blog: Fraud Victims Often Need to Look to the Fraudster’s Professionals for Recovery. The Madoff case has provided many lessons for fraud recovery and prosecution lawyers, including but not limited to recovery from those who benefited from the scheme, such as the early investors in the …Read More

Coordinating Criminal and Civil Justice as a Means of Recovery for Fraud Victims

Is it reasonable for fraud victims to rely on police prosecutions and criminal restitution orders as a means to recovering their lost money? The short answer is no, although periodically partially recoveries do occur. This blog explains what fraud victims should consider when coordinating civil recoveries with criminal complaints to police.   Perceptions of the Criminal Justice System In our social welfare state, the public who receive socially funded health …Read More

Why Fraud Victims Should Make an Election Before Pleading Negligence

Fraud, in its most basic form, is theft by lies and omissions. The losses suffered by fraud victims occur because fraudsters misrepresent facts to their victims, or they fail to advise their victims of material facts that would have affected their decision as to whether to part with their money. We have previously blogged on Fraud Victim or Reckless Investor? – Our Response to Blaming the Victim(120031) wherein we discussed …Read More

Supreme Court of Canada Urges Access to Justice For Fraud Victims

In the past we have written on the Toronto Commercial Court’s promotion of ‘Hybrid Trials” as a legal mechanism which victims of fraud can access to seek a just, efficient and expeditious resolution to their claim – see “An Argument for Hybrid Trials for Victims of Fraud – September 11, 2013.” (117349). We can now report that our concern about access to justice for fraud victims has recently been addressed …Read More

When Investing, Exercise Due Diligence To Avoid Ponzi Schemes

The Ponzi scheme was named after Charles Ponzi (1889-1949), a small time swindler who hit the big time when he invented a lucrative con in the 1920s that netted him more than $15M. Ponzi’s con (confidence scheme) was simple. He operated an extremely attractive investment scheme in which he guaranteed investors a 50 per cent return on their investment in postal coupons. Although he was able to pay his initial …Read More

Fraud and the Confidential Informant / Whistleblower

In many cases of fraud, for a variety of reasons such as embarrassment and fear, some fraud victims do not wish to report what has happened to them to either the police or to their own counsel for the purposes of bringing a civil recovery action. In other cases, persons with knowledge of fraudulent activity will only consider reporting such information as a confidential whistle blower. In cases where fraud …Read More

Regulation of Private Investigators Results from Privacy Violations

While in Canada the public, media, and private investigative associations have raised legitimate concerns about unlicenced investigators offering investigative services to the public, concerns about unregulated private investigations are greater in other jurisdictions.  For example, the regulation of private investigators in the U.K. is likely to come into force in the fall of 2014 as a result of private investigators being convicted of unlawfully obtaining personal information for media (Guardian, …Read More

Recovery from a Fraudster’s Spouse

In many cases of fraud, the misappropriated funds are used to fund a fraudster’s lifestyle or transferred into the possession of a third party. This article discusses recovery from a spouse or family member of a fraudster – an issue often raised by fraud victims in their quest for recovery.   A leading case on this issue is Cambrian Excavators Ltd. v. Taferner, 2006 CarswellMan 101.  This case involved a …Read More