Regina vs. Hershey Rosen

Construction
Mortgage Fraud

Diversion of loan proceeds

This was my first construction fraud case, one in which loan proceeds were applied for improper purposes.  

I gave evidence for the Crown as its last witness outlining the use of the construction loan proceeds and again was permitted to sit with Crown counsel during the trial, which was conducted by Judge Hugh Locke without a jury.  

What made this experience unique was the presentation to me of a document by defense counsel, which was later established to be fraudulent -- but at the time it drew my admission that I had not seen it before…and therefore must have missed it and therefore my findings were wrong.  

It was tough to make that statement when I knew something was amiss!  From a precedent point of view, Rosen’s conviction was the first in Canada for criminal breach of trust in the diversion of building-mortgage funds.