The plaintiff, Arif Hayat, brought an action against the defendants, Mushtaq Raja and his corporations, for fraudulent misrepresentation and oppression under the Business Corporations Act.
Hayat advanced over $555,000 to Raja for investments in a trucking company and a restaurant venture.
Raja used corporate funds for personal expenses, falsely represented his own financial contributions, and fraudulently induced Hayat to resign as a director and surrender his shares in the restaurant corporation.
The court found Raja liable for fraudulent misrepresentation and oppressive conduct.
The court ordered Raja, Minaj Transport Inc., and Maryat Investments Inc. to pay Hayat $475,000, and ordered Direct Ex Logistics Inc. and Raja to repay a $36,179 loan and issue shares to Hayat.
The defendants' counterclaims were dismissed.