Protecting Your Assets during a Fraud Investigation in Calgary

How Assets Become at Risk during a Fraud Investigation

Bank Accounts, Investment Accounts, and Cash Holdings

Financial accounts are usually the first target. Investigators may:

• Freeze chequing and savings accounts
• Restrict access to investment portfolios or RRSPs
• Seize cash believed to be proceeds of crime

Even legitimate funds can be temporarily inaccessible if they are commingled with money under investigation. For individuals and business owners, this can immediately affect payroll, mortgages, and everyday living expenses.

Real Estate, Vehicles, and Business Assets

Physical assets are also at risk during a fraud investigation, including:

• Homes, rental properties, and commercial real estate
• Vehicles, equipment, and luxury items
• Inventory, tools, and operational business assets

Corporate Accounts and Jointly Held Property

Fraud investigations often expand beyond the named accused. Authorities may examine:

• Corporate bank accounts and shareholder assets
• Jointly held accounts with spouses or business partners
• Trusts or holding companies linked to alleged transactions

Seizure, Restraint, and Forfeiture: Understanding the Difference

Seizure

Seizure involves the immediate taking of property believed to be connected to an offence. This can occur during searches or arrests and may include documents, electronic devices, or cash.

Restraint

A restraint order prevents you from selling, transferring, or accessing assets while the case is ongoing. Restraints are commonly sought early in fraud cases to preserve property until trial or resolution.

Forfeiture

Forfeiture occurs only after a conviction (or in some civil proceedings) and results in permanent loss of assets to the Crown. The Crown must prove a clear connection between the property and criminal activity under the Criminal Code of Canada.

Why Early Legal Advice Is Critical to Prevent Asset Loss

Fraud investigations move quickly, and delays can be costly. Early involvement of a Calgary criminal defence lawyer allows you to:

• Challenge overly broad seizure or restraint orders
• Argue for access to funds needed for legal fees and living expenses
• Protect assets that are unrelated to the allegations
• Prevent unnecessary expansion of the investigation

Police Powers to Seize and Restrain Assets

Search Warrants and Production Orders

Police commonly rely on search warrants and production orders to obtain financial evidence.

• Search warrants allow police to enter specific locations to seize documents, electronic devices, cash, or records linked to alleged fraud.
• Production orders compel banks, accountants, employers, or third parties to produce financial records without physical searches.

Both tools require prior judicial authorization and must clearly define:

• What is being sought
• Where it can be found
• Why it is relevant to the investigation

Grounds Required to Freeze Accounts in Alberta

Freezing bank or investment accounts is a serious step. To justify it, police must establish reasonable grounds to believe that:

• The funds are proceeds or instruments of crime, or
• The accounts are necessary to preserve evidence for court proceedings

In Calgary, police typically work with prosecutors to seek restraint orders rather than acting unilaterally. Courts assess whether the freeze is proportionate and supported by credible evidence—not mere suspicion.

When Police Can Seize Property without Prior Notice

In limited circumstances, police may seize property without advance notice, including:

• During lawful arrests
• While executing a valid search warrant
• When evidence is at imminent risk of being destroyed or moved

Even in these situations, police actions must remain reasonable and justified. Sudden seizures are often scrutinized closely by defence counsel to ensure compliance with constitutional protections.

Limits on CPS Authority During Financial Investigations

While the Calgary Police Service has broad investigative powers, there are clear legal limits.

Police cannot:

• Seize assets unrelated to the alleged offence
• Freeze accounts indefinitely without court oversight
• Expand searches beyond what a warrant authorizes
• Use seized property in a punitive manner before conviction

Oversight by the courts—particularly the Court of King’s Bench of Alberta—ensures that financial investigations remain lawful and proportionate.

Defence Strategies to Challenge Overly Broad Seizures

Experienced Calgary defence lawyers regularly challenge asset seizures that go too far. Common defence strategies include:

• Challenging warrant validity due to insufficient grounds or misleading information
• Narrowing the scope of seizures to exclude legitimate, unrelated assets
• Charter-based applications where searches or seizures were unreasonable
• Seeking return of property or access to restrained funds for living and legal expenses

Asset Restraint Orders and Forfeiture Risks

What a Restraint Order Means in a Fraud Case

A restraint order is a court order that restricts your ability to deal with certain assets while a fraud investigation or prosecution is ongoing. In Calgary, restraint orders are commonly sought by prosecutors to preserve property that is alleged to be connected to criminal activity.

A restraint order can:

• Prevent selling, transferring, or refinancing property
• Freeze access to bank and investment accounts
• Restrict business transactions involving restrained assets

Temporary vs. Long-Term Asset Freezes

Not all asset freezes are the same. The duration and impact depend on how the case unfolds.

Temporary freezes may occur:

• During the early investigative stage
• While police review financial records
• Pending a court hearing on restraint or seizure

Long-term freezes can last:

• Throughout a lengthy fraud prosecution
• Until trial or resolution of charges
• Until a forfeiture decision is made by the court

Criminal Forfeiture vs. Civil Forfeiture in Alberta

Alberta law allows for two distinct forfeiture pathways, each with different legal standards and risks.

Criminal forfeiture:

• Occurs only after a criminal conviction
• Requires the Crown to prove assets are proceeds or instruments of crime
• Is decided by the criminal court following sentencing

Civil forfeiture:

• Does not require a criminal conviction
• Proceeds under provincial legislation
• Focuses on whether property is connected to unlawful activity

Impact on Personal Finances and Business Operations

Asset restraint orders can have immediate and severe consequences, including:

• Inability to pay mortgages, rent, or household expenses
• Disruption of payroll, supplier payments, and contracts
• Damage to credit ratings and business relationships
• Financial strain on spouses or business partners

How Defence Lawyers Seek Exemptions for Living and Legal Expenses

A skilled Calgary criminal defence lawyer can apply to the court for exemptions from a restraint order. These exemptions are critical and may allow access to funds for:

• Reasonable living expenses
• Mortgage or rent payments
• Employee wages and essential business costs
• Legal fees to fund a proper defence

What NOT to Do During a Fraud Investigation

Moving or Hiding Assets After an Investigation Begins

Attempting to move, transfer, or conceal assets once an investigation is underway is one of the most serious mistakes you can make.

This includes:

• Transferring money to relatives or third parties
• Selling or gifting property below market value
• Moving funds between personal and corporate accounts
• Using cash withdrawals to avoid traceability

These actions are often interpreted as consciousness of guilt and may result in:

• Expanded restraint orders
• Stronger forfeiture arguments
• Additional criminal allegations

Providing Financial Records without Legal Review

Common problems include:

• Producing incomplete or misunderstood records
• Accidentally waiving legal protections
• Creating inconsistencies that prosecutors later rely on
• Disclosing irrelevant material that broadens the investigation

A Calgary defence lawyer can review requests, ensure they are lawful, and control how and when information is disclosed.

Speaking to Investigators Without Counsel

You are not required to give a statement to police, even if you believe you can “clear things up.”

Speaking to investigators without counsel can:

• Lock you into statements that later prove inaccurate
• Eliminate strategic defence options
• Provide investigators with admissions they otherwise lack
• Shift the focus of the investigation in damaging ways

Investigations conducted by the Calgary Police Service are often methodical and document-driven. Even casual conversations can become evidence.

Deleting Electronic Records or Communications

Deleting emails, text messages, financial software entries, or cloud-based records is extremely dangerous once an investigation is foreseeable.

This includes:

• Deleting messages from phones or messaging apps
• Altering accounting or invoicing software
• Clearing hard drives or cloud storage
• Asking others to delete communications

How These Actions Can Worsen Charges or Lead to Obstruction Allegations

Missteps during an investigation can transform a manageable legal problem into a much more serious one. Courts may view these actions as:

• Attempts to interfere with evidence
• Efforts to defeat asset restraint or forfeiture
• Conduct justifying stricter bail conditions
• Grounds for additional criminal charges

Legal Strategies to Protect Assets

Challenging Unlawful Searches and Seizures (Charter Section 8)

Section 8 of the Canadian Charter of Rights and Freedoms protects individuals from unreasonable search and seizure. In fraud investigations, this protection is especially important because financial evidence is often complex and wide-ranging.

Defence lawyers may challenge:

• Overly broad search warrants
• Warrants based on incomplete or misleading information
• Seizures extending beyond what a warrant authorizes
• Intrusive searches of digital or financial records

Narrowing Restraint Orders through Court Applications

Common arguments include:

• Assets are unrelated to the alleged offence
• The restraint captures legitimate income or savings
• The order is broader than necessary to protect evidence
• The financial impact is disproportionate

Applications are typically brought before the Court of King’s Bench of Alberta, where judges closely examine fairness and proportionality.

Demonstrating Legitimate Sources of Funds

One of the most effective asset-protection strategies is proving that funds or property came from lawful sources.

This may involve:

• Employment or business income records
• Tax filings and CRA documentation
• Loan agreements or inheritance records
• Corporate accounting and dividend histories

Negotiating Asset Terms during Pre-Charge or Pre-Trial Stages

Negotiation goals may include:

• Voluntary undertakings instead of formal restraint orders
• Partial release of funds for living or operating expenses
• Agreements limiting the scope of seized property
• Preventing escalation to civil forfeiture proceedings

Early negotiation can significantly reduce financial disruption and preserve business continuity.

Using Forensic Accounting to Support Defence Positions

Forensic accountants play a critical role in modern fraud defence. Their analysis can:

• Trace funds to legitimate sources
• Identify accounting errors or misinterpretations
• Separate lawful transactions from disputed ones
• Rebut Crown assumptions about financial patterns