Court File No.CV-13-478015

 

ONTARIO

SUPERIOR COURT OF JUSTICE

BETWEEN:

Fraser Simpson
                                                                                                                                                    Plaintiff


-and-

Institute of Chartered Accountants of Ontario

Marshall Sone

Jacqueline Saber

 Global Payments Direct Inc.

Defendants

 

 

 

Amended STATEMENT OF CLAIM

TO THE DEFENDANT

 

A LEGAL PROCEEDING HAS BEEN COMMENCED AGAINST YOU by the plaintiff. The claim made against you is set out in the following pages.

 

IF YOU WISH TO DEFEND THIS PROCEEDING, you or an Ontario lawyer acting for you must prepare a statement of defence in Form 18A prescribed by the Rules of Civil Procedure, serve it on the plaintiff's lawyer or, where the plaintiff does not have a lawyer, serve it on the plaintiff, and file it in this court office, WITHIN 20 DAYS after this statement of claim is served on you, if you are served in Ontario.

 

If you are served in another province or territory of Canada or in the United States of America, the period for serving and filing your statement of defence is 40 days. If you are served outside Canada and the United States of America, the period is 60 days.

 

            Instead of serving and filing a statement of defense, you may serve and file a notice of intent to defend in Form 18B prescribed by the Rules of Civil Procedure. This will entitle you to ten more days within which to serve and file your statement of defense.

 

IF YOU FAIL TO DEFEND THIS PROCEEDING, JUDGMENT MAY BE GIVEN AGAINST YOU IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU.IF YOU WISH TO DEFEND THIS PROCEEDING BUT ARE UNABLE TO PAY LEGAL FEES, LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID OFFICE.

 

IF YOU PAY THE PLAINTIFF'S CLAIM, and $750 for costs, within the time for serving and filing

your statement of defence, you may move to have this proceeding dismissed by the court.

If you believe the amount claimed for costs is excessive, you may pay the plaintiff’s claim and $400 for costs and have the costs assessed by the court.

Date:________________                                            Issued by:_________________________

CLAIM

 

  1. Mr. Simpson claims against Mr. Sone, Ms. Saber, Global Payments Direct Inc., and the ICAO in the amount of:

    (a) $4,202.20   damages for monies paid for professional fees.

    (b) $300,000   damages for lost wages for the period 2009 to 2012.

    (c) $1,000,000 damages for future loss of income,

    (d) pre-judgment interest,

    (e) legal costs and disbursements,

    (f) such other remedy as the court sees as just.


2.      Fraser Simpson (hereinafter “Simpson”) is a resident of Toronto and qualified as a chartered

 

accountant in 1993.

 

3.      Valente Pacitti LLP, Chartered Accountants (hereinafter "VPCA") is a limited liability

 

partnership operating in Vaughn, Ontario.

 

4.      Institute of Chartered Accountants of Ontario. (hereinafter "ICAO") is an Ontario


institution governing chartered accountants in the jurisdiction of Ontario.

 

5.      Mr. Simpson and the ICAO at all material times were parties to a contract between themselves for

 

the membership and benefits related to the professional standards of the ICAO.


6.      On or about the end of February 2007, Mr. Simpson: (a) signed, (b) agreed to, and (c) took

 

delivery of, an employment contract with VPCA.


  1. On or about January 9th 2008 Marshall Sone, an employee of VPCA (hereinafter “Sone”) agreed

 

to pay $4,202.20 by MasterCard for Mr. Simpson’s ICAO professional fees.  

 

  1. On or about the middle of March 2008 the ICAO reinstated Mr. Simpson and permitted him

 

membership in accordance with the bylaws of the Institute and authorized him to use the

 

designation Chartered Accountant.


  1. In February 2008 MS was locked out of the offices of VPCA when it was discovered that he stole

 

over $200,000 in client billings that belonged to the partnership.

 

  1. In March 2008, Mr. Sone wrote a letter to MasterCard and knowingly made a false statement

 

in which he claimed that he did not authorize the credit card payment referred to in point 7.

 

11.  In March 2008, Mr. Sone filed a professional complaint with the ICAO against Mr. Simpson.

 

  1. The ICAO subsequently suspended Mr. Simpson and negligently relied on evidence provided by

 

Mr. Sone and Ms. Saber.

 

13.  By supplying the false statement and letter to MasterCard, Mr. Sone and VPCA breached


the terms of the contract between Mr. Simpson and VPCA.


14.  Mr. Sone and VPCA should have known, or in the alternative did know, that the letter to

 

MasterCard and the subsequent professional complaint to the ICAO were both false. The

 

subsequent prosecution by the ICAO, given the pattern of fraud by Mr. Sone was malicious and

 

negligent.

 

  1. Mr. Gubbins, director at the ICAO, was negligent with respect to his investigation of the ICAO

 

complaint against Mr. Simpson for relying on evidence provided by Justin Elliot and Mr. Sone.

 

  1. Global Payments Direct Inc. (hereinafter “GP”), the credit card processing company, which

 

       handled the credit card payment was negligent for allowing the chargeback by relying on

 

       evidence provided by Mr. Sone. Global Payments should have known, or in the alternative, did

 

       know that Mr. Sone had provided a false statement.

 

17.  The ICAO had engaged a forensic accountant, John Douglas, to investigate the professional

 

conduct complaint filed by Mr. Sone. Mr. Douglas was negligent for relying on evidence

 

provided by Mr. Sone and Ms. Saber.

 
New Developments in 2012

 

18.  In August 2012, Mr. Simpson approached the president of the ICAO, Rod Barr, and the

 

Chairman of the Council, Robert Scullion, after a lengthy disciplinary process in which Mr.

 

Simpson was expelled due to the non-payment of the credit card payment by Mr. Sone. Mr. Barr

 

      and Mr. Scullion had agreed to send this matter to mediation/arbitration in September 2012

 

after staff returned from vacation.

 

19.  In September 2012, Mr. Barr and Robert Scullion recanted their decision and denied mediation.

 

Mr. Barr and Mr. Scullion are negligent for not following policies and procedures established by

 

the Canadian Institute of Chartered Accountants {hereinafter “CICA”}.

 

20.  In October 2012, Mr. Simpson contacted the ICAO audit committee head, John Wright, and

 

requested an independent investigation into the fraud committed by Mr. Sone. Given the

 

involvement of Ms. Cowie, general counsel for the ICAO, and Mr. Barr in concealing evidence of

 

the fraud by Mr. Sone; Mr. Wright sought an investigator outside of Toronto to maintain

 

independence from the executive.  Mr. Wright is negligent for not following policies and

 

procedures established by the CICA for board investigations.

 

  1. Vincent Clifford conducted the investigation for the ICAO audit committee. The investigation by

 

Mr. Clifford was not transparent or independent and did not follow protocol established by the

 

ICAO’s own standards. Mr. Clifford is negligent for relying on evidence provided by the ICAO

 

executive and Mr. Sone and Ms. Saber.

 

22.  It was discovered during Mr. Clifford’s investigation that Mr. Sone indeed committed fraud on

 

the ICAO, and Ms. Cowie and Mr. Barr tried to conceal this fraud.

 

23.  It was learned for the first time, during the investigation by Mr. Clifford, that evidence supporting

 

the fraud was subsequently altered by Ms. Cowie and Mr. Gubbins.

 

  1. At the time of the tort I was a member of the ICAO and therefore the ICAO owed me a duty of
 
      care as prescribed by the Chartered Accountants Act 2010 and the Public Accounting Act,
 
      2004.
 

25.  The ICAO breached their duty by not reporting the fraud when it was discovered: Sone was a

 

      known convict and the ICAO had expelled him for a previous fraud conviction and should have

 

      been alert to his scheme.

 

26.  The ICAO did not notify me of the fraud or respond to GP's second request for a sales draft. The

 

       ICAO did not prepare a sales draft as required by their agreement with GP and subsequently tried

 

       to conceal the fraud by denying its existence despite its obvious nature. Any reasonable person

 

       would deem a letter in which the claim that authorization was not provided when in fact it was, a

 

       deliberate attempt to deceive and commit fraud.

 

  1. The ICAO did not conduct a proper investigation as required by the Chartered Accountants Act,    

 

             2010 and in accordance with standards established by the CICA.

 

28.  The ICAO did not establish an ad hoc committee to investigate the serious allegation  concerning  

 

       Mr. Scullion, Mr. Barr, and Ms. Cowie  in accordance with standards established by the CICA.  

 

  1. The ICAO selected an investigator who did not have expertise in board-led investigations and

 

             fraud. I rely on the Chartered Accountants Act, 2010 and standards publications bu the CICA.

 

  1. I rely on the following;

Chartered Accountants Act, 2010

Public Accounting Act, 2004

Canadian Institute of Chartered Accountants Act

CICA: The 20 Questions Series:

            Governance Committees

            Responding to Allegations of Corporate Wrongdoing.

            Special Committees

 

  1. The plaintiff asks that the trial in this matter be heard in Toronto.



 

 

 

Fraser Simpson

 
fstaxsolutions@gmail.com

 

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