This case involves fraudulent actions by Christina Giovinazzo, who, while employed as a bookkeeper and office manager for 1438767 Ontario Inc., committed fraud and misappropriated $279,409.55.
Key Points:
-
Fraudulent Scheme:
- Ms. Giovinazzo fabricated over 130 fictitious account payables to fake companies, prepared fraudulent cheques, and deposited them into her personal account from June 2014 to January 2021.
- Her actions were discovered during her maternity leave in 2021, leading to her termination.
-
Legal Proceedings:
- A Mareva injunction was granted in April 2021 to freeze her assets.
- Despite being notified, Ms. Giovinazzo failed to respond to the summary judgment motions or attend hearings.
-
Court Findings:
- Liability: The court found evidence of civil fraud, conversion, and unjust enrichment. It confirmed her actions met the criteria for fraud, including intentional false representation and resulting loss to the plaintiff.
- Damages:
- $29,409.55 awarded to the plaintiff (balance after a $250,000 settlement with the Bank of Nova Scotia).
- $250,000 awarded to the bank for its crossclaim.
- $100,000 in punitive damages due to the egregious nature of the fraud.
- Prejudgment Interest: $5,132.72 awarded on total damages.
- Bankruptcy Protection: The court declared the judgments against Ms. Giovinazzo would survive bankruptcy under Section 178 of the Bankruptcy and Insolvency Act.
-
Costs:
- Substantial indemnity costs of $50,000 each awarded to the plaintiff and the Bank of Nova Scotia.
