Category Archives: Alerts

Pat McCann on high profile white collar crimes, the media and the Canadian judicial system

Patrick McCann, a key member of Fasken Martineau’s White Collar Defence and Investigations Group, is featured on the cover of the latest issue of the Canadian Bar Association’s National Magazine. Pat comments in the magazine on the role of the media in high profile cases and its impact on the public and the justice system. Pat, who is an editor of the White Collar Post and counsel to Fasken Martineau, has himself been involved in many high profile criminal cases.

Head over to the National magazine to read the full article.

Join us at the Symposium on White Collar Crime

2016whitecollar

Canadian companies are under more pressure to demonstrate business integrity and to comply with increasingly complex regulatory and criminal law requirements and laws.  If you are a business lawyer, civil litigator, criminal lawyer, or in-house counsel, this is your opportunity to stay on top of the latest legal developments and enforcement trends in order to advise and represent your clients properly on their business integrity.

Hear Fasken Martineau’s Norm Keith and Huy Do, as well as other prosecutors, defense lawyers and regulators of white collar crime on what you and your clients need to know in today’s legal and regulatory landscape.

>>Register now!<<

OSC Launches Whistleblower Program

The Ontario Securities Commission (OSC) has launched the Office of the Whistleblower and published OSC Policy 15-601 Whistleblower Program effective July 15, 2016. Together, these initiatives establish a new whistleblowing program that offers financial awards of up to $5 million for tips on possible violations of Ontario securities law that lead to enforcement action.

The OSC program allows whistleblowers to make anonymous reports to the OSC, and new protections have been enacted for whistleblowers that access the program. In particular, the Securities Act has been amended to add anti-reprisal provisions protecting employees who have sought advice about, expressed an intention to or actually provided information about a possible securities violation to the OSC.  In addition, the Act invalidates gag or confidentiality provisions or agreements that would otherwise silence or prevent whistleblowers from participating in an investigation.

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Anti-Bribery & Corruption Enforcement Protects Immunity of Whistleblowers

The international landscape on the law with respect to whistleblowing is changing dramatically and quickly. The Supreme Court of Canada is the first national high court in the world to recognize and protect the role of whistleblowers, their identity, and immunity, from disclosure and criminal prosecution.  In its decision involving the World Bank Group,  it addressed the subject of whistleblower immunity in an international case.

The opening paragraph of the Supreme Court Judgment, delivered by Justices Moldaver and Cote, reads as follows:

“Corruption is a significant obstacle to international development.  It undermines confidence in public institutions, diverts funds from those who are in great need of financial support, and violates business integrity. Corruption often transcends borders.  In order to tackle this global problem, worldwide cooperation is needed.  When international financial organizations, such as the appellant World Bank Group, share information gathered from informants across the world with the law enforcement agencies of member states, they help achieve what neither could do on their own”.[1]

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Competition Bureau secures second-largest fine in Canadian bid-rigging history

On April 1, 2016, the Competition Bureau and the Public Prosecution Service of Canada (PPSC), formerly the Federal Department of Justice, secured their ninth guilty plea in the Bureau’s years-long investigation of the Japanese auto parts industry. .The Showa Corporation—a Japanese manufacturer and supplier of auto parts—pleaded guilty in Court to one count of bid-rigging under section 47 of the Competition Act. The Showa Corporation was sentenced to pay a fine of $13 million—the second largest fine ever ordered by a Canadian court for a bid-rigging offence.

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What happens in Vegas…SEC investigates Sands Hotel and Casino

In 2006 through to at least 2011, the Las Vegas Sands hotel and casino corporation transferred funds totaling more than $62 million to a “consultant” in China to promote their interests.

Lacking supporting documentation for appropriate authorization and identity, the money trail raised a red flag for the Department of Justice (DOJ) in the United States. This led to an investigation under the authority of Foreign Corrupt Practices Act (FCPA), as well as an investigation carried out by the U.S. Securities and Exchange Commission (SEC), since the Sands is traded on the New York Stock Exchange.

Since the Sands management could not account for the funds transferred to the consultant, bribery was inferred. This lack of controls extended to other transactions, including gifts and entertainment to foreign officials, employee and vendor expense reimbursement, and customer complimentary services.

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FINTRAC fines Canadian bank with no name a fistful of dollars

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the federal agency responsible for the detection, prevention and deterrence of money laundering and terrorist financing, has, for the first time, imposed an administrative monetary penalty on a Canadian bank. The penalty of more than $1.1-million comes at a time of increased scrutiny of Canadian financial institutions and financial transactional crime as a result of the publication of the Panama Papers.

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Managing Local and International Criminal Law Risk for Mining Companies

Despite internal safe guards and the best efforts of mining companies and their executives, criminal investigations can arise in relation to operations at home or abroad.  How a company responds to a criminal investigation or to possible internal criminal misconduct, can have a serious legal and reputational impact, particularly since changes to Canadian law have made it easier for prosecutors to convict corporations and their officers of criminal wrongdoing.  Today at Fasken Martineau’s PDAC 2016 seminar, Peter Mantas and Norm Keith of Fasken Martineau and Sandy Boucher of Grant Thornton discussed how proactive a mining company should be during the critical period after suspected criminal wrongdoing is discovered.

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News alert: SNC-Lavalin Avoids Debarment with Unprecedented Administrative Agreement

On December 10, 2015, SNC-Lavalin announced that it had signed the first-ever administrative agreement with the Government of Canada under the Integrity Regime.

The Integrity Regime, in effect since July 2015, bars companies and their related legal entities from bidding on government contracts if they are charged with or convicted of certain criminal or administrative charges. SNC-Lavalin is currently battling fraud and corruption charges filed in February, 2015 regarding three of its legal entities. This administrative agreement allows it to bid and win government contracts as it signifies the government’s satisfaction with SNC-Lavalin’s ethics and compliance programs.

SNC-Lavalin had to undertake and institute a comprehensive ethics and compliance program. Some of the measures it took include an antitrust and competition policy, a whistleblowing policy, a political contribution policy, appointing compliance officers in every business sector, and obligatory compliance training and certification for all employees.

This is a significant step towards addressing what many companies and legal advisors believe to be a harsh policy. Until now, the Integrity Regime allowed very little discretion to the government to create an alternative to debarment of the accused, pending a judicial decision on criminal charges. While on its face, the Integrity Regime remains rigid, in practice, it now appears that companies facing criminal charges or under investigation may have other options.

Supreme Court of Canada redefines human smuggling

On November 27, 2015, the Supreme Court of Canada decided two appeals, B010 v. Canada (Citizenship and Immigration) and R. v. Appulonappa[1]. The appeals concerned the meaning and application of the human smuggling provisions in the Immigration and Refugee Protection Act (IRPA)[2].

The Supreme Court of Canada unanimously concluded that the offence of “human smuggling” in s. 117 of IRPA, despite its broad wording, applies only to those engaged in organized crime. It does not apply to those who provide humanitarian, mutual and family assistance to asylum-seekers coming to Canada.

These cases arose out of large scale entries to Canada in 2009 and 2010 by Tamil refugees arriving by boat in British Columbia. The Supreme Court’s decision comes in the midst of the most serious worldwide refugee crisis since the Second World War and as Canada prepares to welcome 25,000 Syrian refugees.

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