The ASC did not allege fraud; thus, the first element was not met for the majority. For the second element, the ABCA held that the fraudulent statements must have been directed at the creditor, and a "regulatory body imposing an administrative penalty for conduct contrary to the public interest will rarely be able to establish such a link, as typically it only becomes involved after the impugned conduct has already occurred." The ABCA concluded that Mr. Hennig did not make fraudulent statements directed at the ASC. The final element under section 178(1)(e) relates to the transfer of property. The ABCA held that there was no evidence or findings that property was transferred in this case. Justice Pentelechuk wrote a concurring opinion but determined that the first element was met as the ASC did not need to specifically allege fraud but it can be assessed through a review of the evidentiary record.