Promissory note enforced after court rejects defendants' claim that the loan was a tax fraud scheme.
The plaintiff corporation brought an action to enforce a promissory note for a $335,000 loan made to the defendants.
The defendants argued the note was not a bona fide loan but rather a tax evasion scheme devised by the plaintiff's principal, and that the funds were an advance on future earnings.
The court rejected the defendants' tax fraud allegations as unbelievable and found the promissory note to be a valid, enforceable contract.
The court held the defendants in default and ordered them to pay the outstanding balance of $191,387.02, or alternatively granted the plaintiff a security interest in the defendants' home.
Braveheart Investments Inc. v. Leclair, 2019 ONSC 5918
