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Victims of fraud and bankruptcy

What remedies are left to a victim of fraud when the fraudster goes bankrupt? Gregory Sidlofsky of our office represented a company that was deceived into loaning money to a company called Credifinance Securities Limited. After we were able to tie up part of the proceeds of the loan, Credifinance declared bankruptcy. In our efforts to recover what remained of the loan, we argued that a constructive trust ought to be impossed on $310,500 in the fraudster's account that could be traced to the loan.
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Enforcing American Judgments in Ontario Canada

The purpose of this article is to review how an American plaintiff can enforce a U.S. judgment in Ontario Canada and to address the process of obtaining an Ontario court's recognition and enforcement of the American judgment. Given the historic high level of trade between the United States and Canada it is no surprise that there are commercial disputes resulting in litigation. Where problems sometime arise is in enforcement of the foreign judgments obtained.
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Business, bizyoynes and forum non conveniens

In Towne Meadow Development Corp. v. Israel Development Bank the Ontario Superior Court of Justice had to determine the appropriate location for litigating a dispute. A Canadian construction company hoped to build in Israel. The Israeli bank granted it credit. A shareholder of the company allegedly pledged company assets to secure the loan. The bank then called in its line of credit for repayment wanting access to the assets.
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Scams on the Internet having impact on lawyer

In this column I write mostly about estate or commercial disputes. But given my recent unsuccessful attempts to defang a financial predator, I am taking this opportunity to alert people to fraudsters seeking to take advantage of the unsuspecting. There are people who pretend to be lawyers and use the Internet to scam the naïve and inexperienced. Others pretend to be clients and use unsuspecting lawyers as pawns in fraudulent schemes. These financial predators promise money or business opportunity.
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Cross Border Issues – Israel and Canada

Ontario lawyers are increasingly establishing strategic alliances with Israeli attorneys to better serve their clients. Why? There are lots of reasons. Enforcement of Israeli court orders in Ontario, increased trade between the countries requiring cooperation between corporate and tax counsel, and families with members in both jurisdictions requiring cooperation in Family law and estate disputes.
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Victims of Fraud and Bankruptcy

Gregory Sidlofsky of our office represented a company that was deceived into loaning money to a company called Credifinance Securities Limited. After we were able to tie up part of the proceeds of the loan, Credifinance declared bankruptcy. In our efforts to recover what remained of the loan, we argued that a constructive trust ought to be imposed on $310,500 in the fraudster’s account that could be traced to the loan. The purpose of the constructive trust was to prevent the unjust enrichment of the bankrupt estate. This case went to Ontario’s Court of Appeal and a review of that decision is helpful to those facing a similar dilemma.
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Do Foreign Litigants Have To Come to Ontario To Be Examined?

Izzie Schwartz hired Selila Ness to work for his travel agency doing business in Israel and the United States called “Izzie Travels”. Soon, Izzie recognized Selila’s talent and delegated complete control of his business to her. He trusted her with his client lists, introduced her to his contacts and Selila managed the business Izzie built. After ten years Selila quit. She moved to Ontario and created her own Travel Agency. Selila used all of Izzie’s contacts, made use of his client lists and was a complete success. That success came at Izzie’s expense. Selila’s contract with Izzie provided that she would not complete with Izzie Travels in any similar activity for a period of three years. Since Selila was in Ontario he sued her in that jurisdiction.
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Are Ex Employees Allowed To Set Up A Competing Business?

In my last column we canvassed a fictional scenario of Izzie v. Selila. Izzie hired Selila Ness to work for his travel agency located in Israel and the United States called “Izzie Travels”. Soon, Izzie recognized her talent and took complete control of the business. Izzie trusted her with his client lists, introduced her to his contacts and Selila managed the business Izzie built. After ten years Selila quit. She moved to Ontario and created her own Travel Agency. Selila used all of Izzie’s contacts, made use of his client lists and was a complete success. That success came at Izzie’s expense. Selila’s contract with Izzie provided that she would not compete with Izzie Travels in any similar activity for a period of three years. Since Selila was in Ontario he sued her in that jurisdiction.
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Suing an Ontario Defendant – Security for Costs

Ontario courts order security for costs to protect local defendants from foreign litigants who launch frivolous or vexatious claims and do not have the money to cover a potential cost award against them. Foreign plaintiffs may have assets outside of Ontario and possibly defeat a security for costs motion if his assets are accessible to satisfy a judgment because of reciprocal enforcement legislation.
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But I incorporated…..

But I incorporated..... that is what Darren Convery must have thought when the judge found him personally liable for a company debt. Why do people incorporate companies? One of the main ones is that generally, if a company does business, no employee or officer of the corporation is personally liable for any act done within the scope of their duties on behalf of the corporation. Now there are some exceptions to that general rule that could result in personal liability even if the business is incorporated. Let’s take one example where a careless mistake may prove very costly
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