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
BREAKING Israel kills top Hezbollah figure in Beirut strike, Reuters sources say
Top Hezbollah commander Ibrahim Aqil was killed on Friday in an Israeli strike on Beirut's southern suburbs, two security sources told Reuters.
Woman nearly shut out of mother's will sues brother in B.C. Supreme Court – and wins
Since she was a young girl growing up in Vancouver, Ginny Lam says her mom Yat Hei Law made it very clear she favoured her son William, because he was her male heir.
'It's disgusting': Quebec minister reacts after body of boy, 14, found near Hells Angels hideout
The province's public security minister said he was "shocked" Thursday amid reports that a body believed to be that of a 14-year-old boy was found this week near a Hells Angels hideout near Quebec City.
Ontario man to pay $1,500 surcharge after insurer says his SUV is at higher risk of theft
An Ontario man says it is 'unfair' to pay a $1,500 insurance surcharge because his four-year-old SUV is at a higher risk of being stolen.
DEVELOPING Here's what we know about Israel's latest strike in Beirut
Smoke is rising over Lebanon’s capital of Beirut Friday after Israel’s military struck southern suburbs – a dramatic escalation in a year-long period of conflict between Israel and Hezbollah.
BREAKING Four dead in northern Ontario house fire
Emergency crews in northern Ontario found the bodies of four people inside a home where a fire broke out Thursday night.
Passenger on a previous Titan sub dive says his mission was aborted due to apparent malfunction
A paid passenger on an expedition to the Titanic with the company that owned the Titan submersible testified before a U.S. Coast Guard investigatory panel Friday that the mission he took part in was aborted due to an apparent mechanical failure.
Cognitive decline reduced by MIND diet, especially for women and Black people, study finds
Following the MIND diet for 10 years produced a small but significant decrease in the risk of developing thinking, concentration and memory problems, a new study found.
Montreal couple facing deportation to Mexico granted temporary residency
The Montreal couple from Mexico and their three children facing deportation have received a temporary residence permit.