Edward Prutschi

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.

The appellant was convicted of trafficking in property obtained by crime and possession of property obtained by crime after police discovered $1,136,555 in cash in his vehicle.

The primary issue at trial was whether the Crown proved beyond a reasonable doubt that the appellant knew the funds were proceeds of crime.

The appellant testified he believed the money was "Shoah Gelt" (money belonging to Jewish people in Europe or Asia seeking to move funds to safety).

The trial judge rejected this testimony and convicted the appellant.

On appeal, the appellant challenged the conviction on three grounds: improper application of the W.(D.) test, insufficient reasons for conviction, and a grossly disproportionate sentence.

The Court of Appeal dismissed the conviction appeal and the sentence appeal.