Insight

Ignorance of Fraud is No Defence: Employer Vicariously Liable for Rogue Employee

Ignorance of Fraud is No Defence: Employer Vicariously Liable for Rogue Employee

John Pirie

John Pirie

August 26, 2021 09:58 PM

By Glenn Gibson, John Pirie & Michael Nowina

October 13, 2020

In an unreported judgment Pallotta v. Cengarle, Court file CV-16-56337 released on February 27, 2020, Faieta J. found real estate lawyer Licio Cengarle vicariously liable for his clerk’s mortgage fraud scheme as well as for breach of trust. This case is a cautionary tale for professionals and employers about the need for internal controls.

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