Ontario judge orders 30 days and seeks arrest of man tied to $9.8-million FACTOR transfer
Justice William Black found James Campagna in contempt and ordered 30 days behind bars after FACTOR’s $9.8-million transfer landed in a company account that converted most funds to cryptocurrency.
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By Torontoer Staff
An Ontario Superior Court judge has found Quebecer James Campagna in contempt and ordered his arrest after $9.8 million was transferred from FACTOR’s Scotiabank account into a company linked to him. Justice William Black imposed a 30-day sentence and said Campagna likely benefited from the funds, part of which were converted to cryptocurrency.
The decision follows nearly two years of civil litigation by FACTOR, the Foundation Assisting Canadian Talent on Recordings, which oversees federal and broadcaster funding for the English Canadian music industry. FACTOR has been trying to trace and recover the money since the transfer in June 2024.
How the transfer landed in Vipera’s account
Court filings show FACTOR authorised a purchase that was presented as bitcoin-mining equipment. The $9.8-million transfer was deposited into an account for a numbered company, 10426377 Canada Inc., which does business as Vipera and lists Campagna as sole shareholder. Transcripts and screenshots in the record indicate the transaction used documentation with incorrect FACTOR contact details.
Most of the funds were later converted to cryptocurrency and dispersed among multiple wallets. The court has not criminally charged anyone, and it has not named a perpetrator. FACTOR alleges Campagna and Vipera, alone or with cybercriminals, stole the money. Campagna and his company deny the allegation in filings.
Why the judge found contempt
FACTOR’s lawyers had repeatedly asked the court to compel Campagna to produce documents, correspondence, corporate financial statements and banking records. Justice Black concluded Campagna failed or refused to comply with those orders, and he criticised Campagna’s explanations for missing material.
I find that Mr. Campagna is a liar, a fraud, and a scofflaw, deliberately and knowingly breaching this court’s orders. It is highly likely that he was a knowing and active participant in the fraud, and that he has benefitted and continues to benefit from the proceeds of that fraud.
Justice William Black
The judge also compared Campagna’s approach to court obligations to a common excuse, saying the reasoning resembled, 'the dog ate my homework.' Justice Black noted Campagna appeared to have taken steps to place himself beyond the court’s reach, but gave him a window to purge the contempt once the order reaches him.
Great neutrality on display here. This judge has clearly made a decision already on this case and is playing crowd pleaser. No point spending another 500k in lawyers uselessly then.
James Campagna, by e-mail
Where Campagna is and enforcement challenges
FACTOR’s private investigator and social media posts indicate Campagna and his family moved to Qatar late last year, and his Instagram has shown recent locations including Doha and Dubai. FACTOR’s lawyers told the court he appears to have fled the jurisdiction, which complicates efforts to bring him before an Ontario court.
Campagna says he provided materials he could access and paid investigators. He also said some cards and accounts were not in his name and some documents were beyond his control. His long-standing counsel, Miller Thomson LLP, withdrew in December after the client failed to pay legal bills.
Court rulings and other parties
Justice Black struck evidence presented by Campagna, his company and his expert witness from the record and awarded FACTOR $150,000 in costs for the contempt motion. Scotiabank, a defendant in the civil case, supported FACTOR’s motion to hold Campagna in contempt.
Toronto police investigated the alleged theft initially. The case has since been transferred to the Service de police de la Ville de Montréal, which does not confirm investigations except in exceptional circumstances.
What FACTOR stands to lose
FACTOR distributes about $30 million annually to the English Canadian music industry from federal and private broadcaster funds. The disputed transfer followed a Department of Canadian Heritage deposit of $14.3 million intended for distribution. The civil case seeks restitution of the missing $9.8 million.
- June 2024: $9.8-million transfer from FACTOR’s Scotiabank account to Vipera's account.
- Most of the funds were converted to cryptocurrency and dispersed across many wallets.
- Justice Black found Campagna in contempt and ordered 30 days incarceration.
- Miller Thomson withdrew as Campagna’s counsel in December for non-payment.
- Toronto police passed the file to Montreal police, and no criminal charges have been announced.
The civil litigation will continue as FACTOR seeks to recover funds and the courts consider further remedies. For now, Justice Black’s finding raises the stakes for defendants and the bank as the case proceeds toward resolution.
FACTORmusic industrylegalcryptocurrencyOntario courts
