Re Application for a Production Order pursuant to s. 487.014 of the Criminal Code, 2019 ONCJ 234

ONTARIO COURT OF JUSTICE

CITATION: Re Application for a Production Order pursuant to s. 487.014 of the Criminal Code, 2019 ONCJ 234

DATE: 2019 02 05

FILE: OPP Project Gundy

RE:

IN THE MATTER OF AN APPLICATION FOR

A Production Order pursuant to s. 487.014 of the Criminal Code

Before Justice G.P. Renwick

Considered on 04 February 2019

Reasons released on 05 February 2019

Reasons for Decision

RENWICK J.:

1I have read and considered the application submitted to me yesterday by Detective Constable Martin Connell of the Ontario Provincial Police Serious Fraud Office for a Production Order in the "Project Gundy" investigation.

2The information to obtain submitted by D.C. Connell meets all of the statutory prerequisites for the granting of the application found in s. 487.014 of the Criminal Code.

3I find that it is in the best interests of the administration of justice to issue the warrant for the following reasons (in no particular order):

i. There are several irregularities in the investment process involving syndicated mortgage investments of the Davies Developments as revealed in the "fourth report" of KSV Kofman Inc.;

ii. On their face, the information of the five investors ("Draper," "Adamson," "Lockhart," "Schlanger," and "Vanhevel") is compelling and credible, and corroborates the KSV report;

iii. It is suspicious that there were monies raised for 11 different development projects involving the same individuals (Mr. Singh, Mr. Davies, and Mr. Harris), yet none of the projects was ever completed;

iv. There are multiple conflicts of interest involving the principals (Singh, Davies, and Harris) in the investment fundraising and trustee processes which were not disclosed to the investors;

v. Individual investors never received independent legal advice;

vi. Individual investors appear to have been misled in material respects about the nature of their investments:

a) Investors were never advised that Mssrs. Singh, Davies, and Harris (either directly or indirectly) held a financial interest in the developments;

b) Investors were never advised that their monies may be used for other investments and/or developments;

c) Investors were improperly advised about the priority of their claims/loans; and

d) Investors were improperly advised about the value of the assets of the developments in which they were investing.

vii. I am satisfied that there is little personal or biographical core data which is likely to be contained in the records sought for production;

viii. The documents sought will likely assist investigators to learn how development projects were funded (or over-funded), exact relationships between the principals, where the invested monies were going, and whether or not unlawful business practises had in fact occurred; and

ix. There is a strong public interest to investigate potential frauds and "ponzi" schemes to determine illegality and to bring perpetrators to justice.

4For the above reasons, the Production Order is granted.