The plaintiffs obtained an ex parte Mareva injunction and certificates of pending litigation (CPLs) against assets of several defendants after discovering alleged fraud by their accountant.
A co-defendant spouse moved to discharge the CPL registered against her property and to lift the freezing of her personal bank accounts, asserting sole ownership and lack of knowledge of the alleged fraud.
The court found the plaintiffs failed to provide full and frank disclosure and did not establish a strong prima facie case linking the spouse’s property or accounts to the alleged fraud or demonstrating a proprietary claim.
Given the absence of evidence, the prolonged delay following the ex parte order, and the prejudice to the affected party, the court lifted the injunction and discharged the CPL against the spouse’s property.
