Court File and Parties

COURT FILE NO.: CV-22-683217 DATE: 20230825 SUPERIOR COURT OF JUSTICE - ONTARIO

RE: CHICAGO TITLE INSURANCE COMPANY, Plaintiff

AND: JOHN DOE, JANE DOE, XUAN DIEU VY NGUYEN, 2735046 ONTARIO INC. o/a LPR GLOBAL, CANG TRAN a.k.a. TRAN VAN CANG a.k.a. CANG V. TRAN a.k.a. CANG VAN TRAN, TENG CHUN CHIAO a.k.a TENG CHUN CHAO, THUY DOAN QUANG, NGUYEN HOANG DUY, ALBERT BAIRD and KERRY JAMES, Defendants

BEFORE: Justice Papageorgiou

COUNSEL: Jessica Hewlett for the Plaintiff

HEARD: Aug 25, 2023

Endorsement

Overview

[1] This matter relates to mortgage fraud and an interim ex parte Mareva injunction related to mortgage proceeds.

The Issues

[2] The only issue is whether the interim Mareva injunction should be continued.

Decision

[3] For the reasons that follow I am continuing the Mareva injunction.

Analysis

[4] On or about March 11, 2021, two individuals purporting to be the owners of 7128 Baskerville Run, Mississauga, Ontario obtained mortgage proceeds in the amount of $585,700 from a mortgagee, Ryan Mortgage Income Fund. These mortgage proceeds were placed into an account held by BMO (the “Fraudulent Mortgage Proceeds”).

[5] The Plaintiff, Chicago Title Insurance Company (“Chicago Title”) provided title insurance to the mortgagee.

[6] It was later determined that the individuals who obtained the mortgage were not the owners of the Property.

[7] Chicago Title made investigations and obtained information from the Deputy Director of Land Titles which led it to various accounts where the Fraudulent Mortgage Proceeds were placed and moved as well as details of such individuals’ identity.

[8] Chicago Title obtained a Norwich Order on August 19, 2022 in respect of some banks who then provided further information about where the mortgage proceeds were moved.

[9] I then granted an ex parte interim Mareva injunction on July 13, 2023 which I extended on July 24, 2023. I provided my reasons for both in endorsements.

[10] Chicago Title seeks an Order extending the interim Mareva injunction to October 20, 2023 and that the balance of the motion be adjourned to be spoken to on October 16, 2023 at 10:00 am.

[11] I grant this request for the following reasons:

• Chicago Title has made extensive efforts to serve all of the defendants and has successfully served the defendants, 2735046 Ontario Inc., Cang Tran, Teng Chun Chiao, Nguyen Hoang Duy, Albert Baird, and Ngoc Tran.
• The defendants Xuan Dieu Vy Nguyen, Thuy Doan Quang, Kerry James have not been served. Chicago Title is seeking confirmation that these defendants have been incarcerated in respect of the matters at issue.
• The defendant Nguyen Hoang Duy has retained counsel, Stefan Juzkiw, and delivered a Notice of Intent to Defend. This counsel was provided with the zoom link for this attendance but he did not attend. Counsel for Chicago Title telephoned this counsel during the hearing who advised he would not be attending.
• None of the defendants have provided any materials in respect of the Mareva injunction motion. Thus, my findings on all issues including the strong prima facie case, the risk of dissipation and the balance of convenience are unchallenged.

[12] I reiterate that based upon the materials, there is a strong risk of dissipation if the Mareva injunction is not continued.

[13] Thus, the Mareva injunction is continued to October 20, 2023 and the motion is adjourned to be spoken to on October 16, 2023 at 10:00 am before me if I am available.

Justice Papageorgiou Date: August 25, 2023