What is the consequence of a fraudulent third party obtaining funds from an innocent person?
Ontario, Canada
The following excerpt is from Livingstone v. Toronto Wine Manufacturing Co., 1931 CanLII 19 (ON CA):
It is, of course, like all these cases, one of great hardship, but where one of two innocent persons has, by his act or conduct, made it possible for a fraudulent third party to deceive them both, that one must suffer the loss that follows: Gordon v. Jamies (1885), 30 Ch. D. 249, at p. 258.
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