The appellant was convicted of multiple fraud-related offences arising from a credit and debit card scheme.
At trial, the Crown relied heavily on the testimony of four former co-accused who had previously pled guilty based on agreed statements of fact implicating the appellant.
When these witnesses recanted their statements at trial, the trial judge admitted their prior statements for the truth of their contents under the K.G.B. framework.
The appellant appealed, arguing the statements should not have been admitted and that the trial judge's Vetrovec warning was inadequate.
The Court of Appeal held that while the statements met the test for threshold reliability, the Vetrovec warning failed to adequately explain to the jury the witnesses' strong motives to lie in their prior statements to obtain lenient sentences.
The appeal was allowed and a new trial ordered.