30 Can. Bus. L.J. 210 (1998)
Fraud in the Canadian Courts: An Unwarranted Expansion of the Scope of the Criminal Sanction

handle is hein.journals/canadbus30 and id is 228 raw text is: FRAUD IN THE CANADIAN COURTS: AN
UNWARRANTED EXPANSION OF THE SCOPE OF THE
CRIMINAL SANCTION
Kevin Davis and Julian Roy*
CONTENTS
I.   T he  E ra  of  E xpansion  ..............................................................................  2 11
I.   T he  Elem ents  of the  O ffence  ...........................................................  211
(a)  T he  A ctus  R eus .........................................................................  2 12
(b)  T he  M ens  R ea  ...........................................................................  2 13
2.   Application of the Expanded Definition of Fraud ...........................  214
(a) Fraud on Creditors and Minority Shareholders ........................  215
(i)  R . v.  O lan  ..........................................................................  2 15
(ii)  R .  v.  Z latic  .........................................................................  2 17
(b)  Fraud  Involving  D eception .......................................................  219
II.  The  C ase  for  Strict Construction  .............................................................  222
1.   F air  N otice  .......................................................................................  224
2.   Criminalizing Socially Beneficial Behaviour ..................................  227
3.   Arbitrary  or Discriminatory  Prosecution  .........................................  233
4.   Usurping  the  Role  of Parliam ent ......................................................  234
Ill.  L im iting  P rincip les  ..................................................................................  235
IV .  C onclusio n  ...............................................................................................  236
Corporate and commercial lawyers who have not paid attention
to recent developments in criminal law will probably be surprised
to discover the range of activities that may now attract criminal
sanction. All sorts of commercial dealings that lawyers may pre-
viously have regarded as merely unethical, or at worst civilly
actionable, now appear criminal when examined in light of recent
* Kevin Davis is an Assistant Professor at the Faculty of Law, University of Toronto. Julian
Roy is an associate with the firm of Rotenberg, Shidlowski & Morton in Toronto. We
wish to thank Sara Seck for excellent research assistance and the Wright Foundation for
its financial support. An earlier version of this article was presented at the 27h Annual
Workshop on Commercial and Consumer Law in October, 1997. We are also grateful to
Victor Ramraj for the helpful conversations we had with him in the early stages of this
project and to GuyLaine Charles and the editor of this journal for their comments. Of
course we remain responsible for any errors or omissions.
210

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