Instructor(s): Kenneth Jull

For graduate students, the course number is LAW3017HF.

This section of this course is offered on campus, for students who can attend in person. This course will meet once a week in-person. In order to safeguard the health and safety of students, there is a possibility that all sections of this class will convert to a remote format for all or part of the term. To enrol in this course all students must meet or exceed the tech requirements for enrolment in University of Toronto courses, which can be found here [https://www.viceprovoststudents.utoronto.ca/students/tech-requirements-online-learning/]

Note: The Quercus program will be used for this course. Students must self-enrol in Quercus as soon as confirmed in the course in order to obtain course information.

Recent high profile cases in the areas of foreign corruption, price fixing, deceptive marketing, insider trading, fraud and sexual assault in the workplace are examples of financial crimes.  This course examines the ways in which criminal, regulatory and administrative law prevent harm in the conduct of commercial affairs.  Cases such as SNC-Lavalin have demonstrated the intersection of financial crimes with politics. 

The role of media in covering financial crimes is studied in each lecture, which includes short film clips of movies that portray true crimes. Hollywood movies such as “The Wolf of Wall Street”, may neglect to tell the story about the impact on victims. Documentaries such as “Enron: The Smartest Guys in the Room”, “Inside Job” and “Chasing Madoff” portray byzantine schemes. The role of corporate counsel in compliance is portrayed in the recent film “Dark Waters” (2019). 

Legislation such as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act require the establishment of a compliance programme that includes risk assessment.  A core concept of this course is that risk management and compliance will lead to higher financial rewards.  The priorities inherent in risk management must be related to a theory of justice which is formulated from behind a conceptual veil of ignorance where persons do not know their own wealth, position, gender, race or attributes. (Rawls A Theory of Justice).  Curiously, the issue of gender and racial diversity has not been in the forefront of most writing about risk management, compliance, or white collar crime. This course attempts to address that gap by encouraging dialogue and research about the link between compliance and both gender and racial equality in each of the eight conceptual parts. Case studies of gender and white collar crime are examined such as Elizabeth Holmes and the fall of Theranos, portrayed in the podcast “The Dropout” and Anna Sorokin, portrayed in the podcast “Fake Heiress”.

The course is designed to cover both litigation skills in the area of financial crimes and corporate compliance skills with respect to risk, governance and mergers.

Part I, “Risk Management and Justice” explores the relation between risk, profit, and corporate scandals. Recent events include the earnings disclosure obligations arising from coronavirus risks, the SNC-Lavalin and Bebawi convictions, the Boeing 747 MAX 8 crashes, and the $700 million fraud on the Malaysian government.  

Part II, “Models of Governance and Regulation” considers corporate governance as it applies to the prevention of financial crime (reference BCE and CBCA section 122)

Part III, "Levels of Responsibility: Corporate versus Individual” reviews corporate liability within criminal, regulatory and administrative regimes. The Criminal Code provisions for corporate criminal liability are reviewed using case studies such as SNC-Lavalin, Global Fuels, and Metron.  

Part IV, “Types of Financial Crimes and Violations” examines specific topic areas and illustrative cases including foreign corrupt practices, competition offences such as price fixing, bid rigging, misleading and deceptive marketing in the digital economy, abuse of dominance, the general criminal offence of fraud, securities offences such as insider trading, and the #MeToo movement and harm within a working environment ranging from the criminal offence of sexual assault to sexual harassment in the workplace. 

Part V, “Compliance and change behavior” uses behavioral research to effect change at operational levels. Compensation models including paid whistleblower awards are analyzed.

Part VI, “Zone of non-discovery, internal investigations and deferred prosecution agreements” deals with internal investigations in the “zone of non-discovery by government”. The Nordion investigation is used as a case study.

Part VII, “Inspections, Investigations, and Rights” reviews Charter rights as they may apply in relation to dawn raids, search warrants, privilege claims, and interviewing potential suspects. 

Part VIII, “Remedies and Sentencing” is the last topic which is the mirror side of risk management. This topic is linked to the earlier study of the causes of crime and non-compliance.

Evaluation
Will be based on: Participation in the application of a risk management flowchart to case analysis in lectures (10%); an outline for the research paper (1,000 words) on a recent topic covered in the news that is relevant to financial crimes and corporate compliance (15%). The paper should analyze this topic by relating it to the basic concepts covered in the course and textbook, 2020 Student Edition Profiting from Risk Management and Compliance by Archibald and Jull, due after Reading Week; and a research paper (6,000 words) which builds upon the submitted outline with specific research on the chosen topic due after the course is completed and in accordance with U of T guidelines (75%).
Academic year
2020 - 2021

At a Glance

First Term
Credits
3
Hours
2
Perspective course

Enrolment

Maximum
40

37 JD
3 LLM/SJD/MSL/NDEGS/SJD U

Schedule

M: 8:00 - 9:30 am (in-class)