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Criminal Code (R.S.C., 1985, c. C-46)

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Act current to 2020-09-09 and last amended on 2020-07-01. Previous Versions

PART XFraudulent Transactions Relating to Contracts and Trade (continued)

Fraud (continued)

Marginal note:Prohibition order

  •  (1) When an offender is convicted, or is discharged on the conditions prescribed in a probation order under section 730, of an offence referred to in subsection 380(1), the court that sentences or discharges the offender, in addition to any other punishment that may be imposed for that offence or any other condition prescribed in the order of discharge, may make, subject to the conditions or exemptions that the court directs, an order prohibiting the offender from seeking, obtaining or continuing any employment, or becoming or being a volunteer in any capacity, that involves having authority over the real property, money or valuable security of another person.

  • Marginal note:Duration

    (2) The prohibition may be for any period that the court considers appropriate, including any period to which the offender is sentenced to imprisonment.

  • Marginal note:Court may vary order

    (3) A court that makes an order of prohibition or, if the court is for any reason unable to act, another court of equivalent jurisdiction in the same province, may, on application of the offender or the prosecutor, require the offender to appear before it at any time and, after hearing the parties, that court may vary the conditions prescribed in the order if, in the opinion of the court, the variation is desirable because of changed circumstances.

  • Marginal note:Offence

    (4) Every person who is bound by an order of prohibition and who does not comply with the order is guilty of

    • (a) an indictable offence and is liable to imprisonment for a term not exceeding two years; or

    • (b) an offence punishable on summary conviction.

  • 2011, c. 6, s. 4

 [Repealed, 2015, c. 13, s. 11]

 [Repealed, 2015, c. 13, s. 11]

Marginal note:Using mails to defraud

 Every person who makes use of the mails for the purpose of transmitting or delivering letters or circulars concerning schemes devised or intended to deceive or defraud the public, or for the purpose of obtaining money under false pretences, is guilty of

  • (a) an indictable offence and liable to imprisonment for a term of not more than two years; or

  • (b) an offence punishable on summary conviction.

  • R.S., 1985, c. C-46, s. 381
  • 2019, c. 25, s. 137

Marginal note:Fraudulent manipulation of stock exchange transactions

 Every person is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years or is guilty of an offence punishable on summary conviction who, through the facility of a stock exchange, curb market or other market, with intent to create a false or misleading appearance of active public trading in a security or with intent to create a false or misleading appearance with respect to the market price of a security,

  • (a) effects a transaction in the security that involves no change in the beneficial ownership thereof,

  • (b) enters an order for the purchase of the security, knowing that an order of substantially the same size at substantially the same time and at substantially the same price for the sale of the security has been or will be entered by or for the same or different persons, or

  • (c) enters an order for the sale of the security, knowing that an order of substantially the same size at substantially the same time and at substantially the same price for the purchase of the security has been or will be entered by or for the same or different persons.

  • R.S., 1985, c. C-46, s. 382
  • 2004, c. 3, s. 4
  • 2019, c. 25, s. 138

Marginal note:Prohibited insider trading

  •  (1) Every person is guilty of an indictable offence and liable to imprisonment for a term of not more than 10 years or is guilty of an offence punishable on summary conviction who, directly or indirectly, buys or sells a security, knowingly using inside information that they

    • (a) possess by virtue of being a shareholder of the issuer of that security;

    • (b) possess by virtue of, or obtained in the course of, their business or professional relationship with that issuer;

    • (c) possess by virtue of, or obtained in the course of, a proposed takeover or reorganization of, or amalgamation, merger or similar business combination with, that issuer;

    • (d) possess by virtue of, or obtained in the course of, their employment, office, duties or occupation with that issuer or with a person referred to in paragraphs (a) to (c); or

    • (e) obtained from a person who possesses or obtained the information in a manner referred to in paragraphs (a) to (d).

  • Marginal note:Tipping

    (2) Except when necessary in the course of business, a person who knowingly conveys inside information that they possess or obtained in a manner referred to in subsection (1) to another person, knowing that there is a risk that the person will use the information to buy or sell, directly or indirectly, a security to which the information relates, or that they may convey the information to another person who may buy or sell such a security, is guilty of

    • (a) an indictable offence and liable to imprisonment for a term not exceeding five years; or

    • (b) an offence punishable on summary conviction.

  • Marginal note:Saving

    (3) For greater certainty, an act is not an offence under this section if it is authorized or required, or is not prohibited, by any federal or provincial Act or regulation applicable to it.

  • Definition of inside information

    (4) In this section, inside information means information relating to or affecting the issuer of a security or a security that they have issued, or are about to issue, that

    • (a) has not been generally disclosed; and

    • (b) could reasonably be expected to significantly affect the market price or value of a security of the issuer.

  • 2004, c. 3, s. 5
  • 2019, c. 25, s. 139

Marginal note:Gaming in stocks or merchandise

  •  (1) Every person is guilty of an indictable offence and liable to imprisonment for a term of not more than five years or is guilty of an offence punishable on summary conviction who, with intent to make gain or profit by the rise or fall in price of the stock of an incorporated or unincorporated company or undertaking, whether in or outside Canada, or of any goods, wares or merchandise,

    • (a) makes or signs, or authorizes to be made or signed, any contract or agreement, oral or written, purporting to be for the purchase or sale of shares of stock or goods, wares or merchandise, without the bona fide intention of acquiring the shares, goods, wares or merchandise or of selling them, as the case may be, or

    • (b) makes or signs, or authorizes to be made or signed, any contract or agreement, oral or written, purporting to be for the sale or purchase of shares of stock or goods, wares or merchandise in respect of which no delivery of the thing sold or purchased is made or received, and without the bona fide intention of making or receiving delivery thereof, as the case may be.

    This section does not apply if a broker, on behalf of a purchaser, receives delivery, even if the broker retains or pledges what is delivered as security for the advance of the purchase money or any part of it.

  • Marginal note:Onus

    (2) Where, in proceedings under this section, it is established that the accused made or signed a contract or an agreement for the sale or purchase of shares of stock or goods, wares or merchandise, or acted, aided or abetted in the making or signing thereof, the burden of proof of a bona fide intention to acquire or to sell the shares, goods, wares or merchandise or to deliver or to receive delivery thereof, as the case may be, lies on the accused.

  • R.S., 1985, c. C-46, s. 383
  • 2019, c. 25, s. 140

Marginal note:Broker reducing stock by selling for their own account

  •  (1) Every person commits an offence who, being an individual, or a member or employee of a partnership, or a director, officer or employee of a corporation, if they or the partnership or corporation is employed as a broker by any customer to buy and carry on margin any shares of an incorporated or unincorporated company or undertaking, whether in or outside Canada, later sells or causes to be sold shares of the company or undertaking for any account in which they or their firm or a partner of the firm or the corporation or a director of the corporation has a direct or indirect interest, if the effect of the sale is, otherwise than unintentionally, to reduce the amount of those shares in the hands of the broker or under their control in the ordinary course of business below the amount of those shares that the broker should be carrying for all customers.

  • Marginal note:Punishment

    (2) Every person who commits an offence under subsection (1) is guilty of

    • (a) an indictable offence and liable to imprisonment for a term of not more than five years; or

    • (b) an offence punishable on summary conviction.

  • R.S., 1985, c. C-46, s. 384
  • 2019, c. 25, s. 141
 
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