A Paraguayan pension fund sued over a multi-year fraudulent investment scheme involving shell corporations, forged and misleading investment materials, secret kickbacks to insiders, and concealment of the true nature of several Canadian investments.
The court found that the moving parties’ funds were diverted through Genesis, First Canadian, Union, and Columbus Note structures by deliberate fraudulent misrepresentations, breaches of fiduciary duty, knowing assistance, and knowing receipt.
The court imposed liability for over $20.8 million in damages against the principal fraud actors, declared broad constructive trust and tracing remedies, and awarded punitive damages against the principal individual wrongdoers.
Additional liability was imposed against parties involved in the Columbus Notes transactions, and full indemnity costs were awarded to the plaintiff, with substantial indemnity costs on Union Securities’ cross-claim.
