Part 40 published on 01/11/12
Condominium corporation obtains summary judgment against fraudulent manager and related corporations
The condominium corporation had been defrauded by its manager and various related corporations. The manager and its principal (Khan) had since gone bankrupt and Khan had fled the country. The condominium corporation moved for summary judgment (in various amounts against the different defendants). The defendants were not represented on the motion for summary judgment. The Court ruled in favour of the condominium corporation. The Court said:
The plaintiff’s evidence overwhelmingly established that Khan orchestrated a massive fraud against MTCC 710 by using Channel (the management firm) and other related companies to invoice MTCC 710 for work which was never performed and which was not authorized by the Board of MTCC 710. Khan… admitted that he was the controlling mind of Channel. Channel was the exclusive property manager for MTCC 710 and arranged for the payments to (the related corporations). It follows from the evidence filed, and the notable absence of any evidence from Khan who has fled the country, that Khan pulled the strings at Channel and orchestrated the entire fraud. Both he and the corporations are liable to MTCC 710 for the damages claimed.