- New Horizons in Management series
Edited by Ronald J. Burke and Cary L. Cooper
Chapter 14: Canadian Corporate Corruption
L.S. Rosen Introduction From our perspective of being forensic, investigative accountants who handle corporate fraud and corruption cases across the world, Canada is more than a curiosity. Many investors in the world inappropriately seem to think that Canada has minimal corporate shenanigans, and therefore is relatively safe for investments. Other investors and executives know otherwise, and are able to take essential precautions. The knowledge unevenness and gap breeds corporate white-collar crime against the many ill-informed investors in Canada. The reality is that Canada’s weak corporate laws and fragmented securities laws, ineffective court decisions, negligible monitoring of pyramid scheme corporate financing activities and the essentially non-existent prosecutions make Canada a haven for corporate criminals and corruption. Knowledgeable financial tricksters are easily able to circumvent the few laws and barriers that exist in Canada. The decade since 2000 has provided many examples of financial shenanigans and corporate failures. Prosecution of the US’s Enron and related financial trickery have not improved overall investor protection in Canada, despite what some business writers tend to assume. Canada’s common border with the US is both a hindrance and a blessing for investors and citizens. Historically, enough Canadian company stocks have been traded in both Canada and in the US (and therefore have to comply with US securities laws), that an illusion has been created that Canada has protections against serious securities corruption. In essence, defrauded Canadians have often been able to utilize various US laws to recover some of their lost investment dollars from these ‘cross-listed’...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.