The plaintiffs brought a motion for a Mareva injunction to freeze approximately $6.1 million in settlement funds held in the defendant's solicitor's trust account.
The funds were allegedly derived from a fraudulent investment scheme involving the defendant corporation, which was controlled by individuals connected to a Ponzi scheme operated by Arash Missaghi.
The plaintiffs alleged they were induced to invest substantial sums through misrepresentation and fraud.
The court granted the Mareva injunction, finding the plaintiffs established a strong prima facie case of fraud, that assets were in the jurisdiction, that there was a risk of dissipation, and that irreparable harm would result if the funds were distributed.
The court also allowed the defendant to withdraw $250,000 from the frozen funds for legal expenses.
