" $ 5 6 " - * 5 4 r / & 8 4
JUDGE RULES FOR HAWKESBURY COMPANY IN BUSINESS FRAUD CASE
GREGG CHAMBERLAIN gregg.chamberlain@eap.on.ca
invoices actually submitted by the Chinese TVQQMJFSTu&NBJMTUPUIF$IJOFTFTVQQMJFST GSPN%BOJTTUBUFEBMMQSJDJOHJOGPSNBUJPOHP UPIJNiBOEUPOPPOFFMTFBU/PSFBTU BOE that no invoices should be sent with their shipments.” /PSFBTUQBJE UPUIF8FMMT 'BSHPCBOLBDDPVOUJO8ZPNJOHGSPN"QSJM 8, 2010 to May 10, 2017. Part of the money GSPNUIF8ZPNJOHBDDPVOUXBTMBUFSUSBOT - ferred to U.S. and Canadian accounts for the couple. The remainder went to pay the Chinese suppliers. The two justices also noted that the GPSFOTJDBVEJUJOEJDBUFE8BUTPOXBTOPU FNQMPZFEBU/PSFBTU4IFXBTJOWPMWFEJO QSFQBSJOHUIF&"+JOWPJDFTBOENBLJOHUIFN look like those the Chinese suppliers had sent but with changes to the unit pricing and invoice payment method. Justice Bell noted that the customs tax on some of the original invoices was also iNBSLFEVQuPOUIF&"+JOWPJDFTi5IJT mark-up was used to pay a ‘consult fee’ to 4IJSMFZ)F POFPG%BOJT$IJOBDPOUBDUT5IF &"+JOWPJDFTEJEOPUNFOUJPOFJUIFSIJTSPMFJO UIF/PSFBTUTVQQMZEFMJWFSJFTPSUIFNBSLVQ Justice Bell also rejected defence arguments UIBU&"+XBTBDUJOHBTBNJEEMFNBOTJODF UIFJOWPJDFT%BOJTQSPWJEFE/PSFBTUCPSF the letterheads of the Chinese suppliers BOEOPUUIBUPG&"+ The forensic audit report noted that BNPOH%BOJTBOE8BUTPOTBTTFUTBSFNPSF than two dozen bank accounts in Canada and the U.S. The injunction orders froze those bank accounts while the investigation and court case continued. Justice Gomery concluded that the injunc- tions remain in effect while the court case continues to secure and protect evidence relevant to the matter. She directed the SFUVSOPGBOJ1IPOFTFJ[FEBUUIF%BOJT residence after a copy of the electronic data on it was secured. She also stated that one injunction order related to freezing of financial accounts be modified for release of B3FHJTUFSFE&EVDBUJPO4BWJOHT1MBOJGUIBU 3&41EPFTFYJTU"MMPUIFSBDDPVOUTSFNBJO frozen pending final results of the case. Both sides have 15 days from the date of Justice Gomery’s ruling to present bills and briefs on costs to the court for adjudication if necessary.
A Superior Court judge ruled in favour of a Hawkesbury high-tech company that filed charges of fraud against a former employee and his spouse. Justice Sally Gomery of the Ontario Supe- rior Court ruled, in a September 4 session SFQPSU UIBU/PSFBTU&MFDUSPOJDT$P-UEPG Hawkesbury deserved compensation and EBNBHFTGPSGSBVEGSPN&SJD%BOJT "OZB 8BUTPO UIF &"+ 5FDIOJDBM $PSQPSBUJPO and 8339724 Canada Inc., a numbered company. Judge Gomery also rejected defence argu- ments to overturn injunction orders issued last year on the case by Justice Ryan Bell. The injunction orders aimed at securing and QSPUFDUJOHFWJEFODFHBUIFSFECZ/PSFBTU &MFDUSPOJDT$P-UEPG)BXLFTCVSZBHBJOTU the two people, who are husband and wife, and the two companies for alleged fraud against the Hawkesbury firm over a seven- year period, amounting to more than a million dollars in potential value. “I dismiss the defendants’ motion to set aside the (injunction) orders,” stated Justice Gomery in her assessment report. She also ruled that evidence from both sides indicated the case could be handled through summary judgement. +VTUJDF(PNFSZSVMFE/PSFBTU&MFDUSPOJDT XBTFOUJUMFEUP 64%JODPN - pensation damages from the defendents, $173,180.91 special damages for the cost of the company’s own forensic audit JOWFTUJHBUJPO BOEBMTP GSPN%BOJT in punitive damages. She also ruled the com- pany is entitled to “post-judgment interest on the entire award” starting from the date of the judgment. Fraud case history The case concerned allegations by /PSFBTU&MFDUSPOJDT$P-UE B)BXLFT - bury-based electronics manufacturer, that %BOJT BOE8BUTPO BOE UXP DPNQBOJFT they owned and directed, defrauded the Hawkesbury company from 2010 to 2017 during its dealings with Chinese suppliers for NBUFSJBMTBOEQBSUT%BOJTXBTEJTNJTTFE from the company and is pursuing a wrongful dismissal case now. /PSFBTU&MFDUSPOJDTDPOEVDUFEBGPSFOTJD
Un juge de la Cour supérieure a statué en faveur de Noreast Electronics Co. Ltd., une entreprise de haute technologie de Hawkesbury qui a porté des accusations de fraude contre un ancien employé, Eric Danis, et son épouse Anya Watson. —photo tirée de Facebook
audit and investigation and alleges that %BOJT XIJMFFNQMPZFEXJUIUIFDPNQBOZ as director of sales, had himself set up as TPMFDPOUBDUCFUXFFO/PSFBTU&MFDUSPOJDT and its Chinese suppliers. From 2010 to 2017, he provided hardcopies of invoices from the suppliers. "MMUIFJOWPJDFTEJSFDUFEQBZNFOUTUP&"+ 5FDIOJDBM$PSQPSBUJPOBUUIF8FMMT'BSHP #BOL JO 8ZPNJOH #FGPSF UIBU /PSFBTU &MFDUSPOJDTXPVMETFOEQBZNFOUTUP&"+&3 Industrial Limited at the HSBC Bank in Hong Kong but all the invoices for payments to the 8ZPNJOHCBOLIBEUIFPGàDJBMMFUUFSIFBET of the Chinese suppliers. /PSFBTU &MFDUSPOJDT PGàDJBMT CFDBNF suspicious when a package arrived in March 2017 from one of its Chinese suppliers. An invoice was in the package, which was unusual because during the past several ZFBST%BOJTIBEQSFTFOUFEIBSEDPQJFTPG all the invoices himself. The invoice in the March 2017 package directed payment to a Chinese Bank, not UIF8ZPNJOHCBTFE8FMMT'BSHPBDDPVOU Also, the prices on the invoice were half the amount compared to those of other past JOWPJDFTGSPN%BOJT The company conducted a forensic audit. *UGPVOE%BOJTMJTUFEBTQSFTJEFOUGPS&"+ 5FDIOJDBM$PSQPSBUJPO &"+ UIBU&"+XBT
JODPSQPSBUFEJO8ZPNJOHJO.BSDI with Gerald Pitts identified as the sole officer for the company and listed as its secretary. 1JUUTJTBMTPQSFTJEFOUPG8ZPNJOH$PSQPSBUF Services, a company that helps incorporate companies which want their directors, offi- cers and shareholders kept off the public SFDPSE6OEFS8ZPNJOHTUBUFMBX DPNQBOJFT do not have to reveal that information. The forensic auditors found evidence link- JOH%BOJTUP&"+ UISPVHIB&"+BOOVBM report identifying him as its president and an FNBJMGSPN%BOJTUPBOPUIFSQBSUZJOXIJDI IFJEFOUJàFEIJNTFMGBTBO&"+EJSFDUPS5IF audit noted that starting from April 2010 UIFàWF$IJOFTFTVQQMJFSTUP/PSFBTUCFHBO TFOEJOHUIFJSJOWPJDFTUP%BOJTUISPVHIIJT /PSFBTUFNBJMBDDPVOUBOEBMMUIFJOWPJDFT directed payment to banks in China and Hong Kong. Those invoices were forwarded to a QFSTPOBMFNBJMBDDPVOUPG%BOJTBOEOFX invoices then created to look like they came from the suppliers but directing payment to UIF&"+BDDPVOUJO8ZPNJOH)BSEDPQJFT PGUIPTFJOWPJDFTUIFOXFOUUP/PSFBTUGPS payment. Both Justices Gomery and Bell noted that the forensic audit reported stated the VOJUQSJDFPONBUFSJBMTJOUIFJOWPJDF%BOJT presented “were inflated by 20 per cent to 200 per cent above the prices on the
Publié le mercredi par • Published on Wednesday by: La Compagnie d’édition André Paquette Inc. Imprimé par • Printed by: Imprimerie Prescott et Russell, Hawkesbury, ON # convention : 0040012398
BERTRAND CASTONGUAY Président • President bertrand@eap.on.ca YVAN JOLY Directeur des ventes Sales director yvan@eap.on.ca FRANÇOIS LEGAULT Directeur de l’information News Editor francois.legault@eap.on.ca GILLES NORMAND Dir. Production et Distribution Mgr. gilles.normand@eap.on.ca THOMAS STEVENS Dir. Infographie et prépresse Layout & Prepress Mgr.
L’Assemblée générale annuelle aura lieu à la Salle Joseph Roy 9B rue de l’École, St-Isidore, le jeudi 20 septembre 2018 à compter de 13 h 30
Nous invitons les lecteurs à nous faire parvenir leurs lettres qui ne doivent pas dépasser 300 mots. Nous nous réservons le droit de les modifier ou de refuser de les publier. L’expéditeur doit inclure son nom, prénom, adresse et numéro de téléphone. Readers are invited to send us their letters that must not exceed 300 words. We reserve the right tomodify themor to refuse to publish them. The writer must include their names, address and telephone number. 1100, rue Aberdeen St., Hawkesbury, ON K6A 3H1 Tel.: 613-632-4155 • 1-800-267-0850 • Fax.: 613-632-6383
Suit l’ordre du jour : • Mot de bienvenue • Élections : i) Présidente d’assemblée ii) Secrétaire d’assemblée • Lecture et adoption de l’Ordre du jour • Lecture et adoption du procès-verbal de l’assemblée générale annuelle en date du 21 septembre 2017
• Présentation de la vérification comptable 2017-2018 • Nomination de la firme comptable pour 2018-2019
• Rapport annuel des activités 2017-2018 • Nominations au conseil d’administration • Conférencière invitée : Jackie Mace : Thème : "De l’hôpital à la maison : un trajet compliqué!" • Clôture de l’assemblée générale annuelle • Confirmer votre présence Suite à la clôture de l’assemblée générale annuelle, les SCPR se feront un plaisir de faire des présentations spéciales et par la suite un léger goûter sera servi.
Représentation nationale • National representation Sans frais • Toll free : 1-800-361-6890
thomas.stevens@eap.on.ca Publicité • Advertising: yvan@eap.on.ca
Toute reproduction du contenu est interdite à moins d’autorisation écrite au préalable. No content may be reproduced without prior written permission. Avis : En cas d’erreur ou d’omission, la responsabilité du journal ne dépasse, en aucun temps, le montant de l’espace de l’erreur en cause. Attention: In case of error or omission, in no way will the publisher be liable for more than the amount charged for space concerned.
Nouvelles • News: nouvelles@eap.on.ca
www.editionap.ca
Made with FlippingBook - professional solution for displaying marketing and sales documents online