The plaintiffs brought an urgent, without-notice motion for a Mareva injunction and Norwich order against the defendants, alleging a fraudulent investment scheme.
The defendants, including Richard Nicholson and his company NWR Financial Group, allegedly induced the plaintiffs to invest USD $670,000 in a non-existent hedge fund, Legacy Investors Group Inc., promising high returns.
The court found a strong prima facie case of fraud, evidence of asset dissipation by Nicholson (e.g., luxury purchases, sale of home), and that the balance of convenience favoured granting the injunction to preserve assets.
The court also granted the Norwich order, finding that the five factors for disclosure from non-party financial institutions were met, as they were the only practical source of information regarding the flow of funds.