The moving party bank brought a motion for an interlocutory Mareva injunction against the responding parties, a group of corporate entities and their sole director, who had obtained over $4.5 million in COVID-19 relief loans.
The bank discovered the corporate entities were previously dissolved and revived shortly before applying for the loans, and that the loan proceeds were diverted to personal investment accounts rather than used for eligible business expenses.
The court found the bank established a strong prima facie case of a fraudulent scheme and a real risk of asset dissipation.
The motion for a Mareva injunction was granted, and costs were awarded to the bank on a partial indemnity scale.
