The applicants, judgment creditors of the respondents for over $26 million USD arising from a fraudulent lending scheme, moved to discontinue the payment of living expenses and legal fees to the respondents and their related trusts from the receivership estate.
The trusts brought a cross-motion to strike the Receiver's Eleventh Report, arguing the Receiver exceeded its mandate by tracing funds and making observations about badges of a sham trust.
The court dismissed the motion to strike, finding the Receiver acted within its court-ordered investigatory powers and did not usurp the court's role.
The court granted the applicants' motion to terminate funding, holding that the respondents had exhausted their appeals, were now judgment debtors, and failed to meet the test for funding from frozen assets, as they had not provided full disclosure and the funds belonged to their creditors.
