The defendants Valiollah Onsori-Saisan and Skymark Capital Corporation brought a motion to set aside a Mareva injunction, originally obtained ex parte by the plaintiff Maxol Wealth Investments Inc., which arose from a syndicated mortgage fraud.
The moving parties argued the plaintiff failed to make full and frank disclosure, the injunction was overly broad in capturing a non-party business account (Pomanar Dessert Inc.), and the plaintiff's undertaking for damages was insufficient.
The court dismissed the motion to set aside the injunction, finding that the moving parties' own evidence strengthened their connection to the fraudulent scheme.
However, the court granted, on consent, a further release of funds from the Pomanar account for the moving parties' legal defence, subject to the plaintiff's costs being paid first.
Costs were awarded to the plaintiff on a substantial indemnity basis.