Morning Update: Canada’s $1.1-billion problem; a tearful and angry eulogy for the Shermans

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Good morning,

This is the last edition of Morning Update until the new year. If you're looking for some reading material over the break, we've included a special section pointing to a few of our favourite Globe and Mail longreads from 2017. Thanks for being a subscriber, and happy holidays.

These are the top stories:

Canada's $1.1-billion problem: Regulators dish out big fines but only collect a fraction

Financial regulators across the country levy substantial fines against white-collar criminals and fraudsters – but they often fail to collect on them. A Globe and Mail investigation has found that unpaid securities fines nationwide total more than $1.1-billion (for subscribers). More than $100-million in new fines are issued every year, often to big tough-on-crime headlines. But only a fraction of that flows back to regulators.

This was the response of one man who was fined more than $2.1-million by the BC Securities Commission: "As for the penalties and fines, all I can say is: Knock yourselves out! My having complete disrespect and discontent for the BCSC, I can assure you that I have no intention to ever pay the fines that are levied against me."

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A Ukrainian interpreter who attended a meeting with Trudeau has been arrested on suspicion of being a Russian spy

In October, Stanislav Yezhov accompanied Ukraine's Prime Minister Volodymyr Groysman on a visit to Canada. While here, he was in attendance during a meeting with Justin Trudeau, translating for Groysman. Now Yezhov has been arrested in Ukraine on the suspicion that he was spying for Russia. Yezhov was also present for a meeting between Groysman and British Prime Minister Theresa May over the summer. And there are also photos of him in a White House meeting with then-U.S. vice-president Joe Biden last year. Ukrainian media are reporting that Russian intelligence recruited Yezhov while he was working in Ukraine's Washington embassy.

The son of Barry and Honey Sherman delivered a tearful and angry eulogy

Speaking in front of more than 6,000 mourners, Jonathon Sherman said his family has "had to navigate through a terrifying maze of non-information and unfounded speculation, all while trying to support each other emotionally." Barry and Honey Sherman were found dead last week hanging from a railing by the pool of their Toronto home. Homicide detectives are investigating, though the cause of death is so far being treated as suspicious and not a homicide. The family has criticized police for leaking to various media outlets that the case appeared at first to be a murder-suicide. Relatives want to conduct an independent probe separate from the police investigation. Barry Sherman founded the pharmaceutical giant Apotex, while his wife Honey was a well-known philanthropist.

Sobeys is slamming Loblaw for throwing it 'under the bus' in the bread price-fixing probe

Earlier this week, Loblaw admitted it was part of an industry-wide scheme to fix the price of bread over a 14-year period. But the CEO of Sobeys, Michael Medline, says Loblaw's claim that the problem was industry-wide was "unfair, unsubstantiated, and quite possibly defamatory." (for subscribers) Metro, meanwhile, criticized Loblaw for its plan to offer $25 gift cards to affected customers. "They're guilty and they are allowed to flood the market with gift cards to salvage their reputation," a spokesperson said. The Competition Bureau is currently investigating allegations of price-fixing at seven companies, including Loblaw, Sobeys, Metro, Giant Tiger and Wal-Mart.

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IN CASE YOU MISSED IT

Separatists have regained a slim majority in Catalonia

While separatists lost some support, the vote is still a major blow to Spain's Prime Minister Mariano Rajoy, who was banking on a pro-union victory. Rajoy had called the vote after ousting state leaders and dissolving the regional parliament in response to calls for Catalan independence. Former Catalan leader Carles Puigdemont, who successfully campaigned from exile in this vote, hailed the results: "Mariano Rajoy has received a slap in the face from Catalonia." But what comes next remains unclear. For one, Puigdemont could face arrest if he returns to Spain from Belgium. Rajoy, though, may be forced to respond to some of the grievances among pro-independence Catalans to quell any further dissent.

Catalan vote batters Spanish stocks, euro dips

Spanish stocks and the euro fell, while Spanish government bond yields hit their highest levels in over a month after Catalan separatists wanting to break away from Spain won a regional election. Separatist parties won a slim majority in the parliament of the wealthy Spanish region of Catalonia, a result that looks likely to prolong political tensions which have damaged Spain's economy and prompted a business exodus from the region. In Europe, Britain's FTSE 100 was up 0.04 per cent just after 5 a.m. (ET) while Germany's DAX was off 0.21 per cent. France's CAC 40 slipped 0.20 per cent. In Asia, markets tracked Wall Street higher with Japan's Nikkei rising 0.16 per cent to finish at 22,902.76. Hong Kong's Hang Seng rose 0.72 per cent. The Shanghai composite index slipped 0.08 per cent. The Canadian dollar was trading at 78.61 cents (U.S.). Brent crude and West Texas Intermediate were both lower in early trading.

FYI: The Globe now provides all users access to real-time stock quotes for both Canadian and U.S. markets. Go here to find out about the major changes to our Globe Investor site.

WHAT EVERYONE'S TALKING ABOUT

I used opioids – and I know that B.C.'s pilot program is a literal life saver

"Recently, Health Canada approved a pilot project by the British Columbia Centre for Disease Control that is a polar opposite approach from what I, a user of illicit drugs, lived through and experienced. Instead of restricting access to safer opioid drugs, this project ensures that people using opioids who need access to prescription drugs will get it – no questions asked. People who use opioid drugs should treat this project with great optimism, as should their families, and the general public. It will mean lives saved. It contains no misguided attempts at 'fixing' a human being and it respects their bodies and minds enough not to force them into involuntary withdrawal or abstinence approaches that often lead to more overdose deaths." – Jordan Westfall, president of the Canadian Association of People Who Use Drugs

How #metoo shaped 2017 from start to finish

"The cultural takeaway from this year is not the most Oscar-buzzy film or the most binge-worthy TV series, but the courage of Rose McGowan, Asia Argento, Ashley Judd, Lupita Nyong'o – and so many others; the controlled anger of Uma Thurman; the hashtags of Tarana Burke and Alyssa Milano; the A-list disclosure powers of Gwyneth Paltrow and Angelina Jolie. They did it not with their art but with their own voices and stories. The power of artists to effect change has never been so evident. It started with show business, took on steam and blew up into a revolution." – Marsha Lederman

Toronto's new subway stations: Design's all right but location feels wrong

"When government is spending billions to create places for the public, those places should be … built to be full. That beautiful $198-million Vaughan station was empty when I saw it this week, and will remain so; an ambitious development plan for the area led by Diamond Schmitt Architects will still only generate a peak ridership of less than 3,000 an hour in 15 years. In fact, on my weekday ramble through the new stations, only Pioneer Village and York University had any crowds at all. The rest of the stations were populated largely with sightseeing rail fans, their cameras at the ready to take in the billion-dollar views and, hopefully, have their spirits lifted." – Alex Bozikovic

LONG READS FROM A LONG YEAR

Unfounded: Police dismiss 1 in 5 sexual assault claims as baseless

A Globe investigation revealed that police across Canada were classifying scores of sexual-assault claims as "unfounded," a designation that means the investigating officer doesn't believe a crime occurred.

Since the story was published, at least 100 police forces across the country launched reviews of cases closed as unfounded, with 402 cases being reopened. Police also determined more than 6,000 unfounded cases were misclassified. Many services have now committed to overhauling how they handle sex-assault cases and are planning to work with community stakeholders to review files. But not all forces have taken action, and the extent of the reforms have varied. See what your police service is doing about sexual assault.

Inside the brutal transformation of Tim Hortons

Since taking over the iconic chain in 2014, its new Brazilian owner, 3G Capital, purged head office, slashed costs and squeezed suppliers. Shareholders were happy, but some wondered if 3G was tearing the heart out of Timmy's. Not long after the story's publication, Tim Hortons franchisees began to publicly air their grievances over the cost-cutting. (for subscribers)

On Cheque Day, a toxic mix of money and drugs in Vancouver's Downtown Eastside

The prevalence of fentanyl and carfentanil means drug users in Vancouver's Downtown Eastside are always at risk, but never more so than when social assistance cheques arrive every month. The Globe spent roughly 24 hours in the troubled neighbourhood for a first-hand look at the overdose crisis. (Technically this was published in the last days of 2016, but we're including it here anyway.)

Canada's overdose crisis shows no signs of slowing down: Opioid-related deaths could reach 4,000 by the end of this year, with about a third of those in B.C. A radical pilot project launching in the spring will see health officials distribute clean opioids to drug users in Vancouver and Victoria in an effort to reduce overdoses.

Years after his son's death, Len Boogaard is on a quest to end fighting in hockey

The fall of Derek Boogaard is a cautionary tale about the dangers of fighting. Boogaard, at 28, died from an accidental drug overdose as he tried to cope with the pain that came from his years as a hockey enforcer. After witnessing the physical and cognitive toll hockey took on his son, Len Boogaard is waging a battle of his own: to eliminate fighting from the game. But in the five years since Derek's death, he still wonders if the NHL is listening

PSA: Every year during the holidays, The Globe and Mail offers subscribers its giant holiday crossword. You can go here to print off the PDF, or pick up this Saturday's Globe for the printed version.

HEALTH PRIMER

Dos and don'ts for healthy holiday eating

First off, don't follow strict food rules. Healthy-weight individuals only gain one pound this time of year, so enjoy that shortbread or turkey stuffing. At the same time, don't feel obligated to eat more just to please your host. If you say "no thanks," they'll (eventually) leave you alone. It also doesn't hurt to limit yourself to one drink per hour, and sneaking in a quick 15-minute power walk can help counter some of those added calories.

MOMENT IN TIME

The electrification of Christmas

Dec. 22, 1882: The Germans of the 17th century were probably the first to decorate their Christmas trees with candles, adding a layer of Christian symbolism to the ancient pagan tradition of bringing life into the home in the dead of winter. But candles were problematic – short-lived, hard to attach to flimsy evergreen branches and, of course, prone to setting trees and living rooms on fire. But when Edward Johnson invited a group of reporters to gather 'round the tree in the parlour of his Manhattan home, they found "it was brilliantly lighted with many colored globes about as large as an English walnut," William Augustus Croffut wrote. "There were eighty lights in all encased in these dainty glass eggs, and about equally divided between white, red and blue." Johnson, the vice-president of the Edison Electric Light Company, had taken one of his boss' countless inventions – the incandescent electric light bulb – and used it to transform a centuries-old holiday tradition, giving us new ones in the process: The sound of dads cursing at boxes of tangled wires, cutthroat competition among neighbours for the brightest display – and the soft, colourful glow of lights spilling out onto public streets and squares, making what was once a private celebration a shared one. – Massimo Commanducci

Morning Update is written by Arik Ligeti.

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