Lexpert Article on Canadian Anti-Fraud Legislation Features Comment by John Fabello

December 16, 2015

Canadian regulators have introduced a series of initiatives in recent years aimed at fighting fraud on domestic and international levels. A Lexpert article reporting on this development features comment by partner and head of Torys’ Securities Defence Practice, John Fabello. Below is an excerpt of the article.

“Regulators have been proactively going out to the marketplace saying, look, we are stamping out fraud and we’re making fraud a high priority for our prosecutions,” says John Fabello, a partner and litigator in the Toronto office of Torys LLP. “This is borne out in the numbers and in the penalties they’re obtaining.”

Fabello cites statistics released by the Canadian Securities Administrators (CSA) and by individual securities commissions. “For 2014, out of the total proportion of cases the CSA brought against respondents, about 30 per cent of the respondents were alleged to have engaged in fraud. That’s pretty significant when you consider they’ve got many other categories of claims they bring forth. Look at the number of proceedings commenced by the OSC (Ontario Securities Commission) in 2014. About 40 per cent involved allegations of fraud.”

To read the full article, click here.


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