Complex commercial frauds often involve an intricate web of connecting individuals and entities. Third parties, such as bankers, brokers, or lawyers, may facilitate the primary fraudster's activities. In recognition of this reality, Canadian law has developed various means by which those third parties may be held accountable for their involvement with the fraud. One such means is the tort of “knowing assistance”. It provides that where a fraud has been committed by an individual or institution acting as a trustee or fiduciary to the victim of fraud, a third party to the trust or fiduciary relationship may be personally liable if that third party dishonestly assisted in the fraud.
Published by the Association of Certified Forensic Investigators.