The accused, the CEO of a Shariah-compliant home financing company and the chair of its Shariah Ethics Board, were charged with theft, fraud, money laundering, and Bankruptcy and Insolvency Act offences.
The charges arose after the company was ordered into receivership and the CEO used company funds to purchase over $2 million in gold and silver bullion, which he claimed was to pay the Ethics Board for past services in accordance with Islamic finance principles.
The court found that the Crown failed to prove the mens rea for the offences beyond a reasonable doubt, as the CEO had an honest belief, based on the Mudarabah partnership structure and Shariah law, that he was authorized to use the funds for this purpose.
Both accused were acquitted of all charges.
