Financial Crime Lawyer

If you’re facing a financial crime charge, your professional licensure and career could be in jeopardy, and a conviction means a criminal record that can negatively impact your future. If this is the challenging situation you find yourself in, turn to the skilled legal guidance of an experienced Toronto financial crime lawyer for the help you need today.

Financial crimes are often called white collar crimes, and they refer to nonviolent crimes that are often committed against businesses or corporations. The crimes themselves are designed to unlawfully obtain the property of others – often in commercial settings – and they focus on the financial gain of the accused. Related charges range from fraud to embezzlement, forgery, and beyond, and a conviction can carry a serious prison sentence. Financial crime laws are governed by Canada’s Security of Information Act and its Criminal Code.

Financial crimes can be committed by internal employees or by external operatives, and they can be committed by one person alone or by two or people who work in tandem.

Financial crimes can take many different forms, but most fall into one of several basic categories.

Fraud

Fraud cases relate to cheating any person or public entity out of property, money, services, or any other asset through deceit, falsehood, or other fraudulent means. For the charge of fraud to apply, the prosecution must prove that the following two primary elements are present:

• The accused engaged in a dishonest act.
• The dishonest act caused the victim or victims to be deprived of something.

The dishonest act itself can be as straightforward as lying or making exaggerated claims, but any deceptive practices will do. The standard that the court imposes when determining whether an act qualifies as deceptive is whether a reasonable person would find the act dishonest.

Common examples of fraud include:

• Exploiting another person’s vulnerabilities
• Using business funds for one’s own purposes
• Failing to disclose material facts in commercial transactions when there is a duty to do so
• Breaching a fiduciary duty for one’s own benefit or to benefit a third party

Committing a dishonest act in and of itself doesn’t reach the level of fraud. Instead, the dishonest act must defraud the victim by depriving them of something. This loss isn’t restricted to financial loss but can, instead, amount to causing the victim to experience detriment, prejudice, or the risk of detriment to their economic interests. In other words, a victim of fraud doesn’t have to suffer actual financial loss for the charge of fraud to apply.

Fraud charges can include securities fraud, mortgage fraud, and insurance fraud – to name just a few.

Embezzlement

Embezzlement and fraud both fall under the broader category of theft in Ontario, and embezzlement refers to stealing or misappropriating funds that belong to one’s employer or funds that were placed in one’s trust, such as by an employer. Charges of embezzlement generally apply in business settings in which specific employees work with and have access to the company’s financial resources or property. In order to prove embezzlement, the prosecution must demonstrate that the accused intentionally took, spent, or used property that was entrusted to them by the other party – often an employer – without that other party’s consent or permission.

Breach of Trust

A breach of trust refers to an act or a failure to act on the part of a trustee that the trust document or documents don’t authorize. Common examples include:

• Distributing assets to a beneficiary who isn’t entitled to them
• Breaching one’s duty as a fiduciary, including the duty not to profit from the trust – such as by selling personal assets to the trust
• Investing the trust funds in a manner that is not permitted under the trust’s terms
• Breaching the duty of care set by statute in Canada, such as by investing assets without employing reasonable skill and care under the specific circumstances involved

If you are under investigation for breach of trust, working closely with a practiced criminal defence lawyer is always to your advantage.

Money Laundering

Money laundering – or the laundering of proceeds of crime – refers to any means of converting dirty money, or the proceeds from a crime, into clean money by processing it through legitimate business activities. Once laundered, the funds are much more difficult to trace back to their original criminal origins or source. For the charge to stick, the prosecution must prove that the accused knew or believed that the funds or assets being laundered were derived from the commission of another offence, which is identified as the predicate offence. Most predicate offences are motivated by profit.

Fake Currency

Fake Currency or counterfeit money is the indictable offence of making or beginning to make fake money. In order to convict someone of counterfeiting money, the crown must prove each of the following elements beyond a reasonable doubt:

• The intention of the accused was defrauding others.
• The accused either made or began to make counterfeit money.
• The accused knew that their actions would produce fake currency – whether paper or coin.

False Pretence

False pretence refers to the crime of representing something through words or by another means that the accused knows is false – and doing so with fraudulent intent. The idea behind the crime of false pretense is enticing others, such as investors, to act on the false information – to the financial benefit of the accused.

If you are facing a fraud charge – or have been charged with any other kind of financial crime – it’s important to recognize that the consequences of a conviction are serious. While the criminal accusations against you will be specific to the circumstances involved, there are basic sentencing requirements in place.

Fraud

Fraud charges that involve more than $5,000 in assets carry a maximum prison sentence of 14 years. If the total assets involved are less than $5,000, the crown can proceed either summarily or by indictment. If they proceed summarily, you can face up to 6 months in jail, and if they proceed by indictment, you can face up to two years in prison. Finally, a fraud charge involving more than $1 million in assets comes with a mandatory minimum sentence of 2 years. Fines, restitution, and probation can also apply.

Embezzlement

Embezzlement is a hybrid offence in the sense that the Crown can prosecute these cases by indictment or as summary conviction offences. The penalties applied relate directly to the value of the property stolen. Consider the following:

• Embezzlement of less than $5,000, when charged as an indictable offence, carries up to two years in prison, but the charge carries up to 6 months in jail and fines of up to $5,000 when it is brought summarily.
• Embezzlement of more than $5,000 – when charged as an indictable offence – comes with a maximum sentence of 10 years in prison.
• Embezzlement of more than $5,000 – when charged as a summary conviction offence – comes with a maximum jail term of 6 months and fines of up to $5,000.

When the amount stolen is less than $5,000 and when it’s a first offence, the defendant is more likely to face probation terms, fines, and a restitution order than they are to face a jail sentence.

Breach of Trust

If you are named in a breach of trust case, there are no mandatory minimum sentencing requirements, but you can face up to 14 years in prison if convicted. These charges are ineligible for conditional sentence orders, which refer to orders that allow defendants to serve their sentences in the community, and fines and restitution can apply.

Money Laundering

Money laundering is another hybrid offence, and less serious charges can be brought as summary conviction offences, which carry up to 6 months in jail and fines of up to $5,000. When the charge is more serious, however, it’s an indictable offence that carries a maximum sentence of up to 10 years in prison.

Fake Currency

Whether you create, pass, or possess counterfeit money in Ontario, it’s an indictable offence, and you can face a prison sentence of up to 14 years.

False Pretense

Criminal charges of false pretenses can be either indictable or hybrid offences. If the charge involves less than $5,000 total value, the Crown has the option of bringing the charge summarily, which carries up to a 6-month jail sentence and fines of up to $5,000, or of bringing it as an indictable offence, which comes with a maximum prison sentence of 2 years. If the total value involved is more than $5,000, the charge is an indictable offence that carries up to 10 years in prison.

If you’ve been charged with a financial crime, the stakes are high, and bringing your strongest defence is paramount. Canada’s Criminal Code is tough on financially based crimes, which makes carefully choosing the right criminal defense lawyer that much more important. You’re looking for an experienced lawyer who is well versed in financial crimes and has a proven track record of success. The legal process is complex, but with the right fraud lawyer standing by to help, this journey can be made a lot easier for you.

If you are facing a financial crime charge, you need skilled legal representation in your corner and the best possible defence backing you up, and at Posner Craig Stein, we deliver on both. Our seasoned lawyers dedicate their imposing practice to criminal law, and we are committed to helping you obtain a favourable outcome that protects your rights – in support of your future. If you’ve been charged with a financial crime, it’s time to consult with a trusted defence lawyer who has extensive experience successfully handling challenging cases like yours. We are on your side, so please don’t wait to reach out and contact or call us at 416-391-2118 for more information about what we can do to help you today.