Investors brought an ex parte motion to amend a prior receivership order and expand the powers of an Interim Receiver in proceedings concerning corporations involved in Ontario real estate development projects.
Evidence from an appointed inspector indicated that investment funds raised for development projects had been diverted, including funds used to renovate a Florida property and transferred through corporate accounts controlled by the directing individual.
Additional evidence suggested asset transfers, movement of funds to foreign accounts, and restructuring of corporate holdings while insolvency proceedings were pending.
Relying on statutory authority under the Courts of Justice Act, the Ontario Business Corporations Act, the Canada Business Corporations Act, the Canada Not-for-profit Corporations Act, and the Bankruptcy and Insolvency Act, the court amended the pleadings to add additional respondents and expanded the interim receiver’s authority to protect assets pending further proceedings.