Key Legal Defences Against Investment Fraud

Being accused of investment fraud or participating in a Ponzi Scheme is a serious matter that can lead to significant penalties in Ontario, including jail time, restitution orders, travel restrictions, and a lasting mark on your professional reputation. If you or someone you know is facing allegations related to fraudulent investment schemes in Canada, it’s essential to understand the key legal defences available. A well-crafted defence, supported by a skilled criminal fraud lawyer like Robert Karrass at Karrass Law, can make a substantial difference in the outcome of your case. Our teams work dedicatedly to build a strong case with robust arguments to get you the best possible outcome for your situation. With a successful track record, a detail-oriented approach, and an experienced team, our criminal defence lawyers and experts can provide tailored legal advice and representation to help you navigate fraud charges effectively. 

What is Investment Fraud?

Investment fraud encompasses a wide range of conduct, including Ponzi schemes, false representation of risk, insider trading, or misleading statements used to attract investors. Charges may fall under the Criminal Code or provincial securities legislation, and both require a clear understanding of the legal thresholds for fraud and deceit.

Here are some of the arguments that can be used in defence of investment fraud in Ontario.

Lack of Intent to Defraud

One of the core elements of any investment fraud charge is intent. In court, The Crown must prove beyond a reasonable doubt that the accused deliberately intended to deceive investors for personal or financial gain. If your actions that supported an investment scheme can be shown to stem from poor judgment, mismanagement, or a failed business venture rather than intentional dishonesty, this may be a valid defence. 

Your criminal defence lawyer may argue that the losses were a result of market volatility or bad advice rather than a deliberate attempt to mislead. Experts like the team at Karrass Law would typically support this argument with financial records, investor agreements, and third-party communications to demonstrate transparency and good faith. To start building a defence for criminal charges against you or a loved one, book a consultation with the award-winning criminal defence lawyer at Karrass Law, Robert Karrass. 

Due Diligence and Honest Belief

Similar to lack of intent is the defence of honest belief in the legitimacy of the investment. If the accused reasonably believed the investment structure was legal, viable, and clearly explained to investors, they may not be held criminally liable, even if the project ultimately failed or was discovered to be a Ponzi scheme. 

A criminal fraud lawyer will often investigate how the investment was marketed, whether legal advice was obtained and whether risks were accurately disclosed. Showing that the accused took steps to ensure compliance and acted with due diligence can be enough in some cases to create reasonable doubt.

Insufficient Evidence

Fraud cases are often complex and involve numerous documents. It is the burden of The Crown to present clear, credible evidence that links the accused to a fraudulent scheme. In some cases, the evidence may be circumstantial, conflicting, or lacking in key details such as timelines or proof of control over investor funds.

A strategic criminal defence lawyer, like Robert Karrass, will scrutinize the disclosure package, identify gaps in the prosecution’s case, and challenge unreliable witness testimony or financial tracing methods. If the evidence fails to prove a direct connection between your conduct and investor losses, the charges may be reduced or withdrawn. At Karrass Law, our team of legal experts will assess the details of your case, the evidence presented against you, and more to determine the best course of action for your case. 

Charter Violations

In Canadian courts, the Charter rights are taken seriously. If your rights under the Canadian Charter of Rights and Freedoms were breached during the investigation or arrest, such as unlawful search and seizure, lack of access to counsel, or unreasonable delay in trial, your lawyer may file an application to exclude evidence or stay the proceedings.

This is a highly technical defence, but it can be powerful if police or regulatory agencies overstep during the investigation. An experienced criminal defence lawyer will assess all aspects of your arrest and procedural history to determine whether your Charter rights were violated.

Build a Strong Defence With Legal Expertise at Karrass Law

Facing investment fraud charges doesn’t mean you’re guilty. The law requires the Crown to prove every element of the offence beyond a reasonable doubt, and there are legitimate defences that may apply depending on the circumstances of your case.

Whether the issue is intent, evidence, or due diligence, working with experienced criminal fraud lawyers like the Karrass Law team ensures that your rights are protected and your side of the story is heard. If you’ve been charged or are under investigation, don’t wait. Book a lawyer consultation with our experts. The earlier you involve legal counsel, the better positioned you’ll be to navigate the legal system and build a strong defence.

Contact us today