Sask. court orders trial in fraud case after $100K in stolen cash was traded for bitcoin
A case involving stolen funds from a Saskatchewan business being used to purchase cryptocurrency will be heading back to the courts, thanks to a new decision by Saskatchewan’s Court of Appeal.
The case revolves around an incident that took place in October of 2019.
Court documents outline that a man named Denzel Blackett fraudulently withdrew $110,672.97 from 4 Star Ventures’ account held at Innovation Credit Union (ICU).
According to its website, 4 Star Ventures operates as a power tong and pressure testing company based out of Gull Lake, Sask.
The vast majority of the funds, $103,932.50, were used to purchase Bitcoin. Blackett was arrested and charged by Durham Ontario Regional Police in March of 2020 for his actions in the fraud.
The appeal does not include Blackett, but rather focuses on 4 Star Ventures’ efforts to regain the funds from Secure Digital Markets (SDM), the business that sold Blackett the 9.6823 Bitcoins with the stolen funds.
The original matter was heard in Saskatchewan’s Court of King’s Bench in Swift Current in June of 2023 – where the court granted summary judgement in favour of SDM. The company was entitled to keep the funds held in court and was entitled to any accumulated interest.
A striking application against SDM by ICU was dismissed by the court, in addition to the cross claims brought by both SDM and ICU.
The appeal was heard on Dec. 6, 2023.
In a written decision published on Aug. 28, Justices Caldwell, Schwann and Barrington-Foote concluded that the chambers judge erred when they ruled that SDM was entitled to keep the money as "a bona fide purchaser for value without notice."
The chamber judge's decision found that SDM had acquired the funds in the ordinary course of its business selling cryptocurrency.
“I conclude that the Chambers judge erred in law by rejecting and overlooking evidence relevant to the issue of when SDM learned that the funds it received from Mr. Blackett might have been obtained by him through fraud,” the decision read.
The three justices identified numerous issues, including the chambers judge failing to consider aspects of one affidavit and striking another due to a late filing.
“For these reasons, I conclude that the Chambers judge failed to address the pivotal question of whether SDM might have had knowledge of the fraud before it transferred the bitcoins to Mr. Blackett,” the decision read.
“In my view, it was necessary for the Chambers judge to squarely tackle and dispel that possibility in order to reach the conclusion that the Appellant’s claim to the Funds had been defeated by SDM’s claim to them. That conclusion was essential to his finding that there was no genuine issue requiring a trial in this litigation.”
In their decision, the justices ruled that the decision to grant summary judgment would be set aside, claims and applications by other parties would be revived and it would remit all matters in the litigation to the Court of King’s Bench for determination at trial.
In addition to allowing the appeal, the justices ordered SDM to pay 4 Star Ventures $3,000.
CTVNews.ca Top Stories
Poilievre supports Israel 'proactively striking' Iranian nuclear sites to defend itself
Conservative Leader Pierre Poilievre is supporting Israel's right to defend itself against Iran following last week's ballistic missile attack, saying that right includes 'proactively striking Iranian nuclear sites and oil installations to defund the terrorist regime.'
Hurricane Milton strengthens into a Category 5 storm. Florida orders evacuations
Florida's storm-battered Gulf Coast raced against a Category 5 hurricane Monday as workers sprinted to pick up heaps of appliances and other street debris left over from Helene two weeks ago and highways were clogged with people fleeing ahead of the storm.
'Selfish billionaire': Chip Wilson's mansion vandalized after political sign erected outside
Days after a political sign was erected outside Lululemon founder Chip Wilson's Vancouver mansion, the waterfront property has been vandalized with graffiti.
'Feel free to get naked,' witness testifies Toronto councillor told her during 'networking' weekend
Toronto Coun. Michael Thompson 'forced himself on' a woman who awoke to find him standing over her after she fell asleep drunk, the Crown alleged Monday, as the five-day sexual assault trial of the six-term politician began in Bracebridge, Ont.
Is Disney World still open as Hurricane Milton strengthens to a Category 5?
Despite Hurricane Milton evolving into a Category 5 storm, Walt Disney World Resort remains open to the public and will operate as normal. However, the park announced Monday a few closures in an abundance of caution.
Disgraced former Winnipeg football coach sentenced to 20 years in prison for sexual assault
A disgraced Winnipeg high school football coach convicted of sexual assault and luring will spend 20 years behind bars.
Two people injured in apparent road rage incident, shooting in Toronto
Two people are in hospital after they were chased and shot at in what appears to be an act of road rage before eventually flipping their car while trying to escape, police say.
Sammy Basso, longest living survivor of rare rapid-aging disease progeria, dies at 28
Sammy Basso, who was the longest living survivor of the rare genetic disease progeria, has died at the age of 28, the Italian Progeria Association said on Sunday.
Prayers, protests and police as Canada marks anniversary of Oct. 7 Hamas attack
With prayers, protests, and a heavy police presence, Canada has marked the anniversary of the Oct. 7, 2023, attack by Hamas on Israel that killed about 1,200 people and triggered an ongoing war.