P. Campbell

The applicant brought a motion to strike previously entered guilty pleas for trafficking in cocaine and common assault.

He asserted the pleas were not voluntary because he maintained his innocence and felt pressured by defence counsel to accept a negotiated resolution.

Evidence showed counsel did not conduct a proper plea comprehension review and advised the applicant to answer the court’s plea inquiry questions affirmatively to ensure acceptance of the plea.

The court held that a valid guilty plea must be voluntary, unequivocal, and informed under s. 606 of the Criminal Code.

Finding that the applicant never admitted guilt and entered the plea under improper circumstances, the court concluded the plea was involuntary and constituted a fraud on the court.

The pleas were struck and the matter ordered to proceed to trial on all counts.

The accused were charged with multiple offences under the Canada Small Business Financing Act arising from three government‑guaranteed small business loans obtained between 2005 and 2006.

The Crown alleged that false equipment invoices were submitted to banks to obtain the loans and that the proceeds were diverted through companies controlled by the accused rather than used for legitimate equipment purchases.

The court found beyond a reasonable doubt that the invoices were fabricated and that the accused jointly participated in a scheme to obtain loans through false representations.

However, the court held that the evidence did not establish laundering of proceeds of crime because the Crown failed to prove an intent to conceal or convert the funds rather than merely distribute them.

One accused was convicted on counts relating to the latter two loans and acquitted on the first loan due to identification issues, while the other accused was convicted of participating in the fraudulent loan applications but acquitted of laundering counts.

The defendants, Mohammad Mehdi Toozhy and Sameen Siddiqi, applied for directed verdicts of acquittal on charges relating to three bank loans obtained under the federal small business financing program.

The Crown alleged the defendants used false invoices to obtain loans for equipment that was never purchased, and instead diverted the funds to themselves and others.

The court applied the test for a directed verdict and found that there was some evidence upon which a reasonable jury, properly instructed, could convict each defendant on each charge.

The applications for directed verdicts were dismissed.