COURT OF APPEAL FOR ONTARIO

Page: 62
[140] Bruno said that after his U.S.$1 million was sent to Tropos, U.S.$550,000 was
transferred back to the Cassels Brock trust account for Tropos. Most of that amount was
dispersed to several entities unrelated to Bruno, while $66,000 was used to pay a Cassels
Brock invoice. The remaining U.S.$450,000 was used by Hryniak for various corporate
requirements. None of Bruno‟s U.S.$1 million was ever returned to him.
(iii)
Hryniak’s explanation
[141] Hryniak claimed that he never made any representation to Bruno about investing
in Tropos and that he never received Bruno‟s funds for his own benefit because they were
taken by Cranston.
[142] He said that by late June 2002, Cassels Brock was holding over $1 million in its
trust account for Tropos Capital. Those funds included Bruno‟s money. In July 2002,
Cassels Brock sent Bruno‟s money to Rhino Holdings. Peebles offered some support for
Hryniak‟s contention. In a statement dated March 31, 2005, taken in front of a lawyer,
Peebles said that in July 2002, he inadvertently authorized the transfer of $1 million out
of his law firm‟s trust account to Cranston‟s holding company, Rhino Holdings. In his
reasons, the motion judge did not refer to Peebles‟ statement.
(iv)
The motion judge’s findings
[143] The motion judge held that although Hryniak was not at the meeting with Bruno,
he knew about Bruno‟s investment from the time it was made. He also held that Hryniak