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ARTICLE · 18 APRIL 2018

US$2.6-Billion Fraud Judgment Awarded Against Former Sino-Forest CEO

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On March 14, 2018, the Honourable Justice Penny of the Ontario Superior Court released a decision granting a US$2.6-billion judgment to the SFC Litigation Trust for fraud and breach of fiduciary duty in its action...

CanadaCriminal Law
Robert Staley
Robert Staley
Jonathan Bell
Jonathan Bell
William Bortolin
William Bortolin
Jason Berall
Jason Berall
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On March 14, 2018, the Honourable Justice Penny of the Ontario Superior Court (Commercial List Division) released a decision granting a US$2.6-billion judgment to the SFC Litigation Trust for fraud and breach of fiduciary duty in its action against Allen Chan, the former CEO of Sino-Forest Corporation. The decision is the largest judgment of its kind in Canadian history. The case is remarkable in other respects, as well.

The Sino-Forest Fraud

Sino-Forest was a publicly traded company listed on the Toronto Stock Exchange with a market capitalization of approximately $6 billion at its peak. Its principal businesses included the ownership and management of forest plantations, the buying and selling of standing timber, wood logs and wood products, and the complementary manufacturing of downstream wood products.

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