People who receive funds from someone whom they know, or
reasonably ought to have known, obtained the funds through a breach
of trust may be liable to return the funds based on the doctrines
of knowing assistance or knowing receipt. Turning a blind eye or
otherwise failing to question the source of the funds will not
absolve the recipients from liability.
In Quantum Dealer Financial Corporation v. Toronto Fine
Cars and Leasing Inc., 2022 ONSC 1132 (CanLII), the
plaintiff corporations were in the business of financing used car
inventories for motor vehicle dealers in Ontario. One of the
plaintiffs' customers, Toronto Fine Cars and Leasing (TFC), was
a used car motor vehicle dealership in Mississauga. TFC was owned
by an individual (Diego), who was the sole director, officer and
controlling shareholder.
