The moving party Plaintiffs ("AFEX") sought a continuation of an ex parte Mareva injunction against the Defendants (MBM Trading, Mendel Streicher, and Emmeco Inc.).
AFEX's claim arose from six USD wire transactions totaling over $845,000 that were initiated by MBM but subsequently rejected by MBM's financial institutions due to insufficient funds or frozen accounts.
The court found a strong prima facie case of fraud, inferring that Streicher knew or was wilfully blind to the frozen status of his accounts when initiating the transactions.
The court rejected the Defendants' arguments regarding jurisdiction and the absence of a signed account agreement, finding that the parties' conduct implied an agreement to Ontario jurisdiction and that a mediation clause did not preclude urgent interlocutory relief.
The court also found a serious risk of asset dissipation, noting Streicher's lack of transparency regarding the use of AFEX funds and his rapid repayment of other creditors.
The Mareva injunction was continued, and the MBM Defendants were ordered to provide a sworn statement of worldwide assets and submit to examinations.