The applicant obtained a default judgment for fraud against the respondents regarding a tax loss allocation scheme.
He subsequently obtained an ex parte order under s. 101 of the Courts of Justice Act appointing a receiver over the respondents' assets.
Through further ex parte applications, the receivership was expanded into a broad investigative receivership freezing the assets of 43 additional non-party individuals and entities to protect the interests of thousands of other investors.
The Court of Appeal set aside the orders, holding that while s. 101 permits investigative receiverships in appropriate circumstances, the orders here were unjustifiably overreaching and went beyond protecting the applicant's judgment recovery.
