The accused, charged with making, circulating, or publishing a false prospectus contrary to s. 400 of the Criminal Code, brought a motion for a directed verdict after the Crown closed its case.
The accused argued there was insufficient evidence that she knew the prospectus contained a material misrepresentation regarding a $20 million private placement, or that she actively circulated it.
The court dismissed the motion, finding that the circumstantial evidence—including her role as a founding member, her signing of the prospectus, and her failure to act when informed of severe financial discrepancies—was reasonably capable of supporting an inference of guilt by a properly instructed jury.
The court held that the limited weighing of circumstantial evidence on a directed verdict motion does not permit the judge to resolve competing inferences, which remains the province of the jury.