Episode F14
Episode F14 — Investment Fraud, Ponzi Schemes, and Dishonest Business Representations
38 min · Feb 12, 2024
Audio coming soon
Episode F14 — Investment Fraud, Ponzi Schemes, and Dishonest Business Representations
00:0038 min
Episode Summary
This episode explains investment fraud, Ponzi-style schemes, and dishonest business representations. The key distinction is between legitimate business failure and criminal fraud. A failed investment is not automatically a crime, but dishonest representations, misuse of investor money, concealment, fake returns, or intentional exposure of investor funds to risk may support a fraud investigation. Théroux helps distinguish failed business from dishonest conduct. Zlatic helps with dishonest business conduct and other fraudulent means. Olan helps with deprivation and economic prejudice.
What You'll Learn
- • Anatomy of a Ponzi scheme
- • Failed investment vs. criminal fraud
- • Sentencing factors under s. 380.1 and laundering under s. 462.31
Key Investigator Takeaways
- • Map investor flows and Ponzi payouts
- • Document concealment as evidence of dishonesty
- • Consider proceeds-of-crime exposure under s. 462.31
Cases Discussed
R v Théroux
[1993] 2 SCR 5
Elements of fraud — dishonest act and subjective knowledge
R v Zlatic
[1993] 2 SCR 29
Whether reckless conduct can amount to 'other fraudulent means'
R v Olan
[1978] 2 SCR 1175
Whether risk of economic loss satisfies the deprivation element
R v Riesberry
2015 SCC 65
Causation and risk of deprivation in fraud
Visual Mind Map
Investment Fraud
Ponzi-style schemes
False investment promise
Misrepresented returns
Investor funds
Sources and amounts
Fake returns
Performance fabrications
Ponzi payments
New money paying old
Misuse of funds
Diversion to operator
Concealment
Hidden losses and books
Business failure vs fraud
Théroux distinction
Investor deprivation
Loss to investors
Risk of loss
Exposure to harm
Bank records
Account flows
Corporate records
Ledgers, minutes
Promotional material
Marketing exhibits
Proceeds of crime
s. 462.31
Investigator takeaway
Trace flows + concealment
Transcript
Show transcript
Episode F14 walks through investment fraud and Ponzi files…