R. Adelman

The defendant was found guilty of ten counts of fraud and fraud-related offences involving approximately $8 million, the largest commercial fraud in Ottawa's history.

The defendant used his company as a vehicle to defraud subcontractors, creditors, and financial institutions before absconding to Lebanon.

The court found numerous aggravating factors, including the size of the fraud, the high degree of planning, and the profound impact on victims.

The defendant was sentenced to 7 years in penitentiary, ordered to pay a fine in lieu of forfeiture of $1.7 million, and ordered to pay restitution of $488,057.48.

The defendant brought an application to stay his convictions for fraud and related offences, arguing that the delay from the date of charge to sentencing violated his right to be tried within a reasonable time under s. 11(b) of the Charter.

The court applied the transitional framework from Jordan and calculated the net delay to the end of trial, deducting periods of defence waiver and defence-caused delay.

The court found the net delay was below the 30-month ceiling, and even if it exceeded the ceiling, the delay was justified by the exceptional circumstances of a key Crown witness's illness and the particular complexity of the case.

The court also analyzed the delay during the sentencing phase, concluding it was primarily requested by the defence to obtain a mental health assessment and caused no prejudice.

The application for a stay was dismissed.

The accused, as the directing mind of a construction company, orchestrated a scheme to assemble and transfer approximately $1.7 million to his personal account in Lebanon while the company was insolvent and unable to pay subcontractors, suppliers, employees, and statutory trust obligations.

The court found that the accused knowingly relied on false financial statements, a sham share sale, a fabricated shareholder deposit, and false pretences to obtain credit, bonding, and financing, and then diverted trust and company funds offshore.

Applying the governing fraud principles, the court held that the Crown proved deceit, deprivation, and subjective knowledge of the risk of deprivation beyond a reasonable doubt.

The court convicted the accused on ten counts including fraud, obtaining credit by false pretence, bankruptcy offences, laundering proceeds of crime, forgery, and uttering forged documents.