The respondents were charged with defrauding two sole proprietorships through a factoring scheme involving false invoices.
The trial judge directed a verdict of acquittal, finding that sole proprietorships are not 'persons' capable of being defrauded under the Criminal Code, and refused the Crown's motion to amend the indictment due to irreparable prejudice to the defence.
The Court of Appeal upheld the acquittals.
The Supreme Court of Canada dismissed the Crown's appeal, holding that the trial judge's refusal to amend should not be interfered with and that there was no evidence the registered owner of the proprietorships suffered any actual risk of prejudice to her economic interests.
