Jean‑Claude Hébert

The appeal addresses the governing legal test and its application to the record before the appellate court.

The Court clarifies the proper analytical framework, applies it to the disputed issues, and resolves the appeal accordingly.

The reasons emphasize principled interpretation and consistency with established jurisprudence.

The disposition determines the parties' rights on the issues raised in the appeal.

The appellant, the directing mind of a residential construction company, took deposits from potential home purchasers on the false representation that the deposits were insured.

The company became insolvent, the project was not completed, and most depositors lost their money.

The trial judge found the appellant guilty of fraud, noting that while he sincerely believed the project would be completed, he deliberately lied about the insurance.

The Court of Appeal upheld the conviction.

The Supreme Court of Canada dismissed the appeal, holding that the mens rea of fraud is established by proof of subjective knowledge of the prohibited act and subjective knowledge that the act could result in deprivation.

An honest belief that the project would be completed and no one would ultimately be harmed does not negate the mens rea of fraud.