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Written by Hanna Lee Copy Editor, Digital News
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Good morning. A "sovereign citizen" movement is looking to take advantage of gaps in the Canada Revenue Agency; the fifth estate spoke to one member who believes he's done nothing wrong. Then, we'll look at a case out of the Royal Military College of Canada, where a former student alleges that nothing was done after she found a webcam hidden in her room.
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FEATURED STORIES
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(CBC)
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He followed a debunked conspiracy theory to claim a tax refund. So why did the CRA agree to a $40M payout?
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In 2023, an ironworker in northern Ontario filed bogus tax returns to the Canada Revenue Agency, claiming he was owed refunds totalling more than $40 million. The fifth estate found that the agency did not check the veracity of those returns — sending out refunds in instalments two weeks later, including a $10-million deposit.
What's happening: Jonathon Pearce is part of a growing movement of so-called "sovereigns," who believe Canada as a country does not exist. Following disproven online conspiracy theories, they have been able to dupe the CRA into handing over millions in bogus refunds. Pearce said he was as surprised as anyone when he received the money; he had contacted a call centre 10 days before he got the refund and outlined his conspiratorial beliefs. In spite of the call, the millions still landed in his account.
Why it matters: Pearce's case shows how people have been able to take advantage of gaps in the CRA's fraud detection systems. Leaked records show the agency later identified nearly $300 million in bogus claims linked to the same tax scheme, made between May 2023 and January 2024; it's unclear how much was paid out. The agency told the fifth estate it is unable to know how much it has paid out in bogus returns to so-called sovereign citizens, as it does not track fraudulent returns by personal views or intent.
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BEHIND THE SCENES
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By Steven D'Souza, co-host, the fifth estate
At the fifth estate, we often tackle difficult stories involving subjects who want to avoid the spotlight. When someone won't talk to us and won't do an on-camera interview, we sometimes try an unscheduled interview — a quick encounter, usually, with just a short window for questioning. More often than not, we don’t get all the answers we need.
This week’s episode, however, was very different. After Jonathon Pearce rejected our interview requests, we went to his home with hidden cameras rolling. He proceeded to talk to us for more than an hour, explaining in depth the deeply conspiratorial beliefs that led him to file the false paperwork.
He claims he did nothing wrong, and that he was trying to access money that belongs to him inside what he believes is a secret government account, assigned to every citizen at birth. The agency told us that it's aware of these schemes and has "made significant progress" in addressing them.
In this case, the unscheduled interview gave us all the answers we needed, but raised a serious question: Who is safeguarding the public's money?
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Former student says someone hid a webcam in her Royal Military College dorm. No one was ever charged
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Kelly Stewart says she discovered a webcam that someone had hidden in her dorm room at the Royal Military College of Canada in 2018. And though documents show an investigation was launched the same day she reported the device, no charges were ever laid.
What's happening: Stewart is sharing her story publicly for the first time, emboldened by the story of the woman who alleges she was gang-raped at Cornell University. Now 28, she believes the investigation into her case — which found evidence was insufficient to lay charges — was flawed. Although she believes another student had placed the webcam in her room, she says her superiors didn't support her, telling her to toughen up and suggesting her career could be impacted by seeking mental health help.
Why it matters: She says her health suffered so much that she eventually requested — and was granted — a voluntary release a year later on compassionate grounds, meaning she did not have to reimburse the government for the cost of her schooling. She also filed a formal complaint in May 2025 about the investigating officer, which the Military Police Complaints Commission told CBC News is being processed.
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