The plaintiffs brought a motion for default judgment against their former investment advisor and his corporate entities for civil fraud, breach of fiduciary duty, and conversion.
The defendants had convinced the unsophisticated plaintiffs to withdraw $350,000 from their RRSPs for a fictitious start-up investment, but instead misappropriated the funds for their own benefit, including purchasing a heavily leveraged property.
The court granted default judgment, awarding compensatory damages that accounted for the lost funds and tax consequences, $75,000 in punitive damages for the defendants' highly reprehensible conduct, and $92,000 in full indemnity costs due to the defendants' egregious abuse of the litigation process.
