< Ontario's Judge Denies the Crowns Proposal to "refreeze" Assets of a Family Connected to Alleged $11M in Fraud. - Canadian Fraud News Inc. | Fraud related news | Fraud in Canada

Ontario’s Judge Denies the Crowns Proposal to “refreeze” Assets of a Family Connected to Alleged $11M in Fraud.

Justice Peter Cavanagh has denied the province’s bid to “refreeze” the assets of the family tied to the alleged theft of $11 million in pandemic aid in Ontario Superior Court. Justice Cavanagh dismissed a motion by the Crown that claimed legal fees were being paid using money gained by way of fraud.

In court documents, the province alleges Sanjay Madan, his family, and an associate named Vidhan Singh perpetrated a massive fraud to transmit COVID-19 relief cash to numerous bank accounts. The Crown alleges that “Madan was the “ringleader” of a wider “conspiracy,” predating the pandemic, which saw millions in “secret commissions” paid in exchange for hiring contractors and subcontractors on government IT projects.” as reported in Caledon Enterprise.

Although Ontario Provincial Police are investigating this matter, no criminal charges have been laid.

The government’s allegations against the Madans and Singh have not been proven in court. But in civil court testimony, Madan acknowledged that the Support for Families (the COVID-19 relief program), which gave per-child pandemic payments of $200 and $250, was “a free-flowing program.” He further testified that he dropped some security provisions to allow more payouts to be made into the same bank accounts. Madan was fired from this position.

The province has frozen $28 million in Madan assets in Canada and India, limiting the family to about $500,000 for their legal defence. Most of that money has now been spent on lawyers’ fees.

But after the family filed counterclaims against the government, Crown lawyers purposed a “motion to refreeze” their assets. This motion would further limit what the family can spend.

In the ruling a few weeks ago, Justice Cavanagh concluded the funds available to the family “will be insufficient to pay in full the legal costs that will be required to defend this litigation (as well as living expenses.)” This decision is a setback for the Crown.

The Star reported in August 2021 that Madan flew to India, where he owns two villas in Hyderabad, purchased and sold “more than $500,000” in gold. Maden allegedly rushed back to Canada as (the) OPP were knocking on his doors. Originally sourced by: https://www.caledonenterprise.com/