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Court File No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
MOTION RECORD TO APPOINT A RECEIVER (Returnable September 11, 2018)
September 10, 2018 BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #30169I Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
Court File No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
MOTION RECORD TO APPOINT A RECEIVER (Returnable September 11, 2018)
September 10, 2018 BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #30169I Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
Court File No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
MOTION RECORD TO APPOINT A RECEIVER (Returnable September 11, 2018)
September 10, 2018 BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #30169I Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
INDEXINDEX
Court File No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List)
BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
TABLE OF CONTENTS
TAB NO. DESCRIPTION PAGE NO.
1 Notice of Motion 1
2 Affidavit of Tim Rutherford affirmed September 7, 2018 7 A Exhibit "A" — Order of Justice Dunphy dated August 9, 2018 22 B Exhibit "B" — Order of Justice Dunphy dated August 17, 2018 31 C Exhibit "C" — Order of Justice Dunphy dated September 5,
2018 36
D Exhibit "D" — E-mail from Erin Hoult to Sam Sadek and Lilian Fam dated August 17, 2018
40
E Exhibit "E" — Requisition to note the Defendants in default dated August 29, 2018
42
F Exhibit "F" — Correspondence between Erin Hoult and TD Bank between August 10 and September 6, 2018
46
G Exhibit "G" — Corporation Profile Report for Lilian Fam Pharma Inc.
109
H Exhibit "H" — Excerpt from TD Bank Visa statements of Sam Sadek dated August 13, 2018
113
I Exhibit "I" —TD Bank account statements of Lilian Fam Pharma Inc. bank account between July 30 and August 13, 2018
116
J Exhibit "J" —TD Bank account statements of SRX Investment 119 Inc. bank account between June 1, 2017 and August
Court File No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List)
BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
TABLE OF CONTENTS
TAB NO. DESCRIPTION PAGE NO.
1 Notice of Motion 1
2 Affidavit of Tim Rutherford affirmed September 7, 2018 7 A Exhibit "A" — Order of Justice Dunphy dated August 9, 2018 22 B Exhibit "B" — Order of Justice Dunphy dated August 17, 2018 31 C Exhibit "C" — Order of Justice Dunphy dated September 5,
2018 36
D Exhibit "D" — E-mail from Erin Hoult to Sam Sadek and Lilian Fam dated August 17, 2018
40
E Exhibit "E" — Requisition to note the Defendants in default dated August 29, 2018
42
F Exhibit "F" — Correspondence between Erin Hoult and TD Bank between August 10 and September 6, 2018
46
G Exhibit "G" — Corporation Profile Report for Lilian Fam Pharma Inc.
109
H Exhibit "H" — Excerpt from TD Bank Visa statements of Sam Sadek dated August 13, 2018
113
I Exhibit "I" —TD Bank account statements of Lilian Fam Pharma Inc. bank account between July 30 and August 13, 2018
116
J Exhibit "J" —TD Bank account statements of SRX Investment Inc. bank account between June 1, 2017 and August
119
Court File No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List)
BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
TABLE OF CONTENTS
TAB NO. DESCRIPTION PAGE NO.
1 Notice of Motion 1
2 Affidavit of Tim Rutherford affirmed September 7, 2018 7 A Exhibit "A" — Order of Justice Dunphy dated August 9, 2018 22 B Exhibit "B" — Order of Justice Dunphy dated August 17, 2018 31 C Exhibit "C" — Order of Justice Dunphy dated September 5,
2018 36
D Exhibit "D" — E-mail from Erin Hoult to Sam Sadek and Lilian Fam dated August 17, 2018
40
E Exhibit "E" — Requisition to note the Defendants in default dated August 29, 2018
42
F Exhibit "F" — Correspondence between Erin Hoult and TD Bank between August 10 and September 6, 2018
46
G Exhibit "G" — Corporation Profile Report for Lilian Fam Pharma Inc.
109
H Exhibit "H" — Excerpt from TD Bank Visa statements of Sam Sadek dated August 13, 2018
113
I Exhibit "I" —TD Bank account statements of Lilian Fam Pharma Inc. bank account between July 30 and August 13, 2018
116
J Exhibit "J" —TD Bank account statements of SRX Investment Inc. bank account between June 1, 2017 and August
119
15, 2018 K Exhibit "K" — TD Bank account statements of SRX Investment
Inc. bank account between June 1, 2017 and August 15, 2018
142
L Exhibit "L" — Supporting documents for transfers undertaken in SRX account on August 8 and 9, 2018
156
M Exhibit "M" — Excerpts from http://www.emaarmisr.com 160 N Exhibit "N" — Excerpts from https://www.orascomdh.com 180 0 Exhibit "0" — Statement of Defence, Counterclaim and
Crossclaim of Emily Rx Pharm Inc., Sameh Sadek, Lilian Fam, St. Maharial Pharmacy Inc. and St. Maharial Clinic Inc.
183
P Exhibit "P" — Decision of the Discipline Committee of the Ontario College of Pharmacists regarding Lilian Fam dated August 16, 2018
203
Q Exhibit "Q" — Public View Terminal Results regarding Toronto actions involving Defendants
222
R Exhibit "R" — Notice of Discontinuance filed in Sadek v. Bank of Montreal et al. proceeding
288
S Exhibit "S" — Statement of Claim, Notice of Discontinuance, Requisition to Note in Default and Default Judgment filed in filed in Teva Canada Limited v. St. Maharial Pharmacy Inc. et al. proceeding
302
T Exhibit "T" — Printout of "Timeline" page of Facebook profile of "Lilian Fam" from August 29, 2018
313
U Exhibit "U' — Writs of execution against the Defendants 332 V Exhibit "V" — Personal Property Security Act search results
showing registrations against the Defendants 335
3 Affidavit of Doug Quan sworn September 10, 2018 423 A Exhibit "A" — Photographs taken by DJ Kona on August 15,
2018 431
B Exhibit "B" — Photographs taken by DJ Kona on August 24, 2018
436
C Exhibit "C" — Photographs taken by DJ Kona on August 30, 2018
444
D Exhibit "D" — Photographs taken by Geoff Hall on September 3, 2018
452
E Exhibit "E" — Photographs taken by Geoff Hall on September 10, 2018
463
F Exhibit "F" — Documents presented to on August 22, 2018
470
4 Consent of Alvarez & Marsal Canada Inc. to act as Receiver 471 5 Draft Order 473 6 Blackline against Model Receivership Order 498
15, 2018 K Exhibit "K" — TD Bank account statements of SRX Investment
Inc. bank account between June 1, 2017 and August 15, 2018
142
L Exhibit "L" — Supporting documents for transfers undertaken in SRX account on August 8 and 9, 2018
156
M Exhibit "M" — Excerpts from http://www.emaarmisr.com 160 N Exhibit "N" — Excerpts from https://www.orascomdh.com 180 0 Exhibit "0" — Statement of Defence, Counterclaim and
Crossclaim of Emily Rx Pharm Inc., Sameh Sadek, Lilian Fam, St. Maharial Pharmacy Inc. and St. Maharial Clinic Inc.
183
P Exhibit "P" — Decision of the Discipline Committee of the Ontario College of Pharmacists regarding Lilian Fam dated August 16, 2018
203
Q Exhibit "Q" — Public View Terminal Results regarding Toronto actions involving Defendants
222
R Exhibit "R" — Notice of Discontinuance filed in Sadek v. Bank of Montreal et al. proceeding
288
S Exhibit "S" — Statement of Claim, Notice of Discontinuance, Requisition to Note in Default and Default Judgment filed in filed in Teva Canada Limited v. St. Maharial Pharmacy Inc. et al. proceeding
302
T Exhibit "T" — Printout of "Timeline" page of Facebook profile of "Lilian Fam" from August 29, 2018
313
U Exhibit "U' — Writs of execution against the Defendants 332 V Exhibit "V" — Personal Property Security Act search results
showing registrations against the Defendants 335
3 Affidavit of Doug Quan sworn September 10, 2018 423 A Exhibit "A" — Photographs taken by DJ Kona on August 15,
2018 431
B Exhibit "B" — Photographs taken by DJ Kona on August 24, 2018
436
C Exhibit "C" — Photographs taken by DJ Kona on August 30, 2018
444
D Exhibit "D" — Photographs taken by Geoff Hall on September 3, 2018
452
E Exhibit "E" — Photographs taken by Geoff Hall on September 10, 2018
463
F Exhibit "F" — Documents presented to on August 22, 2018
470
4 Consent of Alvarez & Marsal Canada Inc. to act as Receiver 471 5 Draft Order 473 6 Blackline against Model Receivership Order 498
15, 2018 K Exhibit "K" — TD Bank account statements of SRX Investment
Inc. bank account between June 1, 2017 and August 15, 2018
142
L Exhibit "L" — Supporting documents for transfers undertaken in SRX account on August 8 and 9, 2018
156
M Exhibit "M" — Excerpts from http://www.emaarmisr.com 160 N Exhibit "N" — Excerpts from https://www.orascomdh.com 180 0 Exhibit "0" — Statement of Defence, Counterclaim and
Crossclaim of Emily Rx Pharm Inc., Sameh Sadek, Lilian Fam, St. Maharial Pharmacy Inc. and St. Maharial Clinic Inc.
183
P Exhibit "P" — Decision of the Discipline Committee of the Ontario College of Pharmacists regarding Lilian Fam dated August 16, 2018
203
Q Exhibit "Q" — Public View Terminal Results regarding Toronto actions involving Defendants
222
R Exhibit "R" — Notice of Discontinuance filed in Sadek v. Bank of Montreal et al. proceeding
288
S Exhibit "S" — Statement of Claim, Notice of Discontinuance, Requisition to Note in Default and Default Judgment filed in filed in Teva Canada Limited v. St. Maharial Pharmacy Inc. et al. proceeding
302
T Exhibit "T" — Printout of "Timeline" page of Facebook profile of "Lilian Fam" from August 29, 2018
313
U Exhibit "U' — Writs of execution against the Defendants 332 V Exhibit "V" — Personal Property Security Act search results
showing registrations against the Defendants 335
3 Affidavit of Doug Quan sworn September 10, 2018 423 A Exhibit "A" — Photographs taken by DJ Kona on August 15,
2018 431
B Exhibit "B" — Photographs taken by DJ Kona on August 24, 2018
436
C Exhibit "C" — Photographs taken by DJ Kona on August 30, 2018
444
D Exhibit "D" — Photographs taken by Geoff Hall on September 3, 2018
452
E Exhibit "E" — Photographs taken by Geoff Hall on September 10, 2018
463
F Exhibit "F" — Documents presented to on August 22, 2018
470
4 Consent of Alvarez & Marsal Canada Inc. to act as Receiver 471 5 Draft Order 473 6 Blackline against Model Receivership Order 498
TAB 1
Tab 2
Tab 1
Commercial List No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
NOTICE OF MOTION TO APPOINT A RECEIVER
The plaintiff ("AstraZeneca Canada") will make an ex parte motion to a Judge on Tuesday,
September 11, 2018 at 10:00 a.m., or as soon after that time as the motion can be heard at 330
University Avenue, Toronto, Ontario, M5G 1E6.
PROPOSED METHOD OF HEARING: The motion is to be heard orally.
THE MOTION IS FOR
(a) an order substantially in the faun attached at Tab 5 of the Motion Record, which
includes without limitation:
(i) an order under section 101 of the Courts of Justice Act appointing Alvarez
& Marsal Canada Inc. ("A&M") as receiver (the "Receiver") of the
Canadian assets, property and undertakings of the defendants, and with
investigative powers in respect of the assets, property and undertakings of
the defendants, wherever situate, and related powers;
Commercial List No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
NOTICE OF MOTION TO APPOINT A RECEIVER
The plaintiff ("AstraZeneca Canada") will make an ex parte motion to a Judge on Tuesday,
September 11, 2018 at 10:00 a.m., or as soon after that time as the motion can be heard at 330
University Avenue, Toronto, Ontario, M5G 1E6.
PROPOSED METHOD OF HEARING: The motion is to be heard orally.
THE MOTION IS FOR
(a) an order substantially in the faun attached at Tab 5 of the Motion Record, which
includes without limitation:
(i) an order under section 101 of the Courts of Justice Act appointing Alvarez
& Marsal Canada Inc. ("A&M") as receiver (the "Receiver") of the
Canadian assets, property and undertakings of the defendants, and with
investigative powers in respect of the assets, property and undertakings of
the defendants, wherever situate, and related powers;
Commercial List No. CV-18-602745-00 CL
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) BETWEEN:
ASTRAZENECA CANADA INC. Plaintiff
- and -
SAMEH SADEK also known as SAM SADEK, ST. MAHARIAL PHARMACY INC. dba MD HEALTH PHARMACY, ST. MAHARIAL CLINIC INC., SRX INVESTMENT INC., SHEPHERD RX PHARMACY INC. and LILIAN FAM
Defendants
NOTICE OF MOTION TO APPOINT A RECEIVER
The plaintiff ("AstraZeneca Canada") will make an ex parte motion to a Judge on Tuesday,
September 11, 2018 at 10:00 a.m., or as soon after that time as the motion can be heard at 330
University Avenue, Toronto, Ontario, M5G 1E6.
PROPOSED METHOD OF HEARING: The motion is to be heard orally.
THE MOTION IS FOR
(a) an order substantially in the faun attached at Tab 5 of the Motion Record, which
includes without limitation:
(i) an order under section 101 of the Courts of Justice Act appointing Alvarez
& Marsal Canada Inc. ("A&M") as receiver (the "Receiver") of the
Canadian assets, property and undertakings of the defendants, and with
investigative powers in respect of the assets, property and undertakings of
the defendants, wherever situate, and related powers;
-2-
(ii) an order temporarily sealing the Motion Record, Factum, and Book of
Authorities of the plaintiff all dated September 10, 2018;
(iii) orders continuing and extending the existing Mareva injunction and
granting the plaintiff leave to, among other things, pursue judgment against
the defendants in this action; and
(iv) an order awarding the plaintiff the costs of this motion, and of the prior
motion and attendances relating to the Mareva injunction, in each case on a
full indemnity basis; and
(b) such further and other relief as this Honourable Court deems just.
THE GROUNDS FOR THE MOTION ARE
(a) on August 9, 2018, Justice Dunphy granted an Order in the nature of a Mareva
injunction (the "August 9th Order") against the assets of the defendants, save
Shepherd Rx Pharmacy Inc. Justice Dunphy granted further orders regarding,
among other things, service and extending certain terms of the Mareva injunction
to additional financial institutions on August 17, 2018 (the "August 17th Order")
and September 5, 2018 (the "September 5th Order", together with the "August 9th
Order" and "August 17th Order", the "Mareva Orders");
(b) in breach of the Mareva Orders, the relevant defendants have not provided sworn
statements of assets;
(c) there is good reason to believe that Ms. Fain and Mr. Sadek have left the Province
of Ontario in breach of the Mareva Orders;
-2-
(ii) an order temporarily sealing the Motion Record, Factum, and Book of
Authorities of the plaintiff all dated September 10, 2018;
(iii) orders continuing and extending the existing Mareva injunction and
granting the plaintiff leave to, among other things, pursue judgment against
the defendants in this action; and
(iv) an order awarding the plaintiff the costs of this motion, and of the prior
motion and attendances relating to the Mareva injunction, in each case on a
full indemnity basis; and
(b) such further and other relief as this Honourable Court deems just.
THE GROUNDS FOR THE MOTION ARE
(a) on August 9, 2018, Justice Dunphy granted an Order in the nature of a Mareva
injunction (the "August 9th Order") against the assets of the defendants, save
Shepherd Rx Pharmacy Inc. Justice Dunphy granted further orders regarding,
among other things, service and extending certain terms of the Mareva injunction
to additional financial institutions on August 17, 2018 (the "August 17th Order")
and September 5, 2018 (the "September 5th Order", together with the "August 9th
Order" and "August 17th Order", the "Mareva Orders");
(b) in breach of the Mareva Orders, the relevant defendants have not provided sworn
statements of assets;
(c) there is good reason to believe that Ms. Fain and Mr. Sadek have left the Province
of Ontario in breach of the Mareva Orders;
-2-
(ii) an order temporarily sealing the Motion Record, Factum, and Book of
Authorities of the plaintiff all dated September 10, 2018;
(iii) orders continuing and extending the existing Mareva injunction and
granting the plaintiff leave to, among other things, pursue judgment against
the defendants in this action; and
(iv) an order awarding the plaintiff the costs of this motion, and of the prior
motion and attendances relating to the Mareva injunction, in each case on a
full indemnity basis; and
(b) such further and other relief as this Honourable Court deems just.
THE GROUNDS FOR THE MOTION ARE
(a) on August 9, 2018, Justice Dunphy granted an Order in the nature of a Mareva
injunction (the "August 9th Order") against the assets of the defendants, save
Shepherd Rx Pharmacy Inc. Justice Dunphy granted further orders regarding,
among other things, service and extending certain terms of the Mareva injunction
to additional financial institutions on August 17, 2018 (the "August 17th Order")
and September 5, 2018 (the "September 5th Order", together with the "August 9th
Order" and "August 17th Order", the "Mareva Orders");
(b) in breach of the Mareva Orders, the relevant defendants have not provided sworn
statements of assets;
(c) there is good reason to believe that Ms. Fain and Mr. Sadek have left the Province
of Ontario in breach of the Mareva Orders;
-3-
(d) the defendants took steps on August 8 and 9, 2018, to further dissipate their assets
in Ontario after having received short notice of the then-pending motion for a
Mareva injunction, including transfers of over $180,000 into a TD Bank account in
the name of one of Sadek and Fam's minor children (the "DS Account");
(e) the defendants were noted in default in this proceeding on August 29, 2018;
(f) as was determined on the motion for a Mareva injunction, there is a strong prima
facie case that the defendants undertook a scheme to fraudulently misappropriate
over $7.7 million from AstraZeneca Canada. Further, the defendants are now taken
to admit the allegations in the Statement of Claim;
(g) the value of the defendants' assets in Ontario appears to be well below the amounts
taken from AstraZeneca Canada by way of the fraudulent scheme;
(h) there is a serious risk that the defendants, or any of them, will continue to attempt to
dissipate their assets to try to prevent or otherwise frustrate execution by
AstraZeneca Canada. In addition, there is a serious risk that the most valuable
assets remaining in Ontario — namely, two residential properties — are wasting;
(i) if a Receiver is not appointed, the ability of AstraZeneca Canada to execute
judgment against the defendants will be in serious jeopardy, and AstraZeneca
Canada will suffer irreparable harm;
(j) A&M has consented to act as the Receiver;
(k) the defendants have other known creditors. However, the appointment of a
Receiver will not jeopardize the rights of third parties, including those creditors;
-3-
(d) the defendants took steps on August 8 and 9, 2018, to further dissipate their assets
in Ontario after having received short notice of the then-pending motion for a
Mareva injunction, including transfers of over $180,000 into a TD Bank account in
the name of one of Sadek and Fam's minor children (the "DS Account");
(e) the defendants were noted in default in this proceeding on August 29, 2018;
(f) as was determined on the motion for a Mareva injunction, there is a strong prima
facie case that the defendants undertook a scheme to fraudulently misappropriate
over $7.7 million from AstraZeneca Canada. Further, the defendants are now taken
to admit the allegations in the Statement of Claim;
(g) the value of the defendants' assets in Ontario appears to be well below the amounts
taken from AstraZeneca Canada by way of the fraudulent scheme;
(h) there is a serious risk that the defendants, or any of them, will continue to attempt to
dissipate their assets to try to prevent or otherwise frustrate execution by
AstraZeneca Canada. In addition, there is a serious risk that the most valuable
assets remaining in Ontario — namely, two residential properties — are wasting;
(i) if a Receiver is not appointed, the ability of AstraZeneca Canada to execute
judgment against the defendants will be in serious jeopardy, and AstraZeneca
Canada will suffer irreparable harm;
(j) A&M has consented to act as the Receiver;
(k) the defendants have other known creditors. However, the appointment of a
Receiver will not jeopardize the rights of third parties, including those creditors;
-3-
(d) the defendants took steps on August 8 and 9, 2018, to further dissipate their assets
in Ontario after having received short notice of the then-pending motion for a
Mareva injunction, including transfers of over $180,000 into a TD Bank account in
the name of one of Sadek and Fam's minor children (the "DS Account");
(e) the defendants were noted in default in this proceeding on August 29, 2018;
(f) as was determined on the motion for a Mareva injunction, there is a strong prima
facie case that the defendants undertook a scheme to fraudulently misappropriate
over $7.7 million from AstraZeneca Canada. Further, the defendants are now taken
to admit the allegations in the Statement of Claim;
(g) the value of the defendants' assets in Ontario appears to be well below the amounts
taken from AstraZeneca Canada by way of the fraudulent scheme;
(h) there is a serious risk that the defendants, or any of them, will continue to attempt to
dissipate their assets to try to prevent or otherwise frustrate execution by
AstraZeneca Canada. In addition, there is a serious risk that the most valuable
assets remaining in Ontario — namely, two residential properties — are wasting;
(i) if a Receiver is not appointed, the ability of AstraZeneca Canada to execute
judgment against the defendants will be in serious jeopardy, and AstraZeneca
Canada will suffer irreparable harm;
(j) A&M has consented to act as the Receiver;
(k) the defendants have other known creditors. However, the appointment of a
Receiver will not jeopardize the rights of third parties, including those creditors;
-4-
(1) the balance of convenience strongly favours granting the appointment of a
Receiver. Further, in all the circumstances, it is just and convenient to appoint a
Receiver;
(in) sections 101, 135(2) and 137(2) of the Courts of Justice Act, R.S.O. 1990, C. 43;
(n) rules 19.02, 37.07 and 41 the Rules of Civil Procedure; and
(o) such further and other grounds as the lawyers may advise.
THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the Motion:
(a) the four-volume Motion Record dated August 8, 2018, Supplemental Motion
Record dated August 17, 2018, Second Supplemental Motion Record dated
September 5, 2018;
(b) the affidavit of Tim Rutherford affirmed September 7, 2018;
(c) the affidavit of Doug Quan sworn September 10, 2018;
(d) the Consent of A&M to act as the Receiver; and
(e) such further and other evidence as the lawyers may advise and this Honourable
Court may permit.
-4-
(1) the balance of convenience strongly favours granting the appointment of a
Receiver. Further, in all the circumstances, it is just and convenient to appoint a
Receiver;
(in) sections 101, 135(2) and 137(2) of the Courts of Justice Act, R.S.O. 1990, C. 43;
(n) rules 19.02, 37.07 and 41 the Rules of Civil Procedure; and
(o) such further and other grounds as the lawyers may advise.
THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the Motion:
(a) the four-volume Motion Record dated August 8, 2018, Supplemental Motion
Record dated August 17, 2018, Second Supplemental Motion Record dated
September 5, 2018;
(b) the affidavit of Tim Rutherford affirmed September 7, 2018;
(c) the affidavit of Doug Quan sworn September 10, 2018;
(d) the Consent of A&M to act as the Receiver; and
(e) such further and other evidence as the lawyers may advise and this Honourable
Court may permit.
-4-
(1) the balance of convenience strongly favours granting the appointment of a
Receiver. Further, in all the circumstances, it is just and convenient to appoint a
Receiver;
(in) sections 101, 135(2) and 137(2) of the Courts of Justice Act, R.S.O. 1990, C. 43;
(n) rules 19.02, 37.07 and 41 the Rules of Civil Procedure; and
(o) such further and other grounds as the lawyers may advise.
THE FOLLOWING DOCUMENTARY EVIDENCE will be used at the hearing of the Motion:
(a) the four-volume Motion Record dated August 8, 2018, Supplemental Motion
Record dated August 17, 2018, Second Supplemental Motion Record dated
September 5, 2018;
(b) the affidavit of Tim Rutherford affirmed September 7, 2018;
(c) the affidavit of Doug Quan sworn September 10, 2018;
(d) the Consent of A&M to act as the Receiver; and
(e) such further and other evidence as the lawyers may advise and this Honourable
Court may permit.
-5-
September 10, 2018 BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #301691 Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
5 -5-
September 10, 2018 BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #301691 Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
5 -5-
September 10, 2018 BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #301691 Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
5
ASTRAZENECA CANADA INC. -and- SAMEH SADEK aka SAM SADEK et Commercial List No. CV-18-602745-00 CL al.
Plaintiff Defendants
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) Proceeding commenced at Toronto
NOTICE OF MOTION FOR A RECEIVER
BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #30169I Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
ASTRAZENECA CANADA INC. -and- SAMEH SADEK aka SAM SADEK et Commercial List No. CV-18-602745-00 CL al.
Plaintiff Defendants
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) Proceeding commenced at Toronto
NOTICE OF MOTION FOR A RECEIVER
BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #30169I Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
ASTRAZENECA CANADA INC. -and- SAMEH SADEK aka SAM SADEK et Commercial List No. CV-18-602745-00 CL al.
Plaintiff Defendants
ONTARIO SUPERIOR COURT OF JUSTICE
(Commercial List) Proceeding commenced at Toronto
NOTICE OF MOTION FOR A RECEIVER
BLAKE, CASSELS & GRAYDON LLP Barristers & Solicitors 199 Bay Street Suite 4000, Commerce Court West Toronto ON M5L 1A9
R. Seumas M. Woods LSO #30169I Tel: 416-863-3876 [email protected]
Erin Hoult LSO #54002C Tel: 416-863-4011 Fax: 416-863-2653 [email protected]
Lawyers for the plaintiff
ASTRAZENECA CANADA INC. -a
nd- SAMEH SADEK aka SAM SADEK et
Comm
erci
al List No. CV-18-602745-00 CL
al.
Plaintiff
Defendants
ONTARIO
SUPERIOR COURT OF JUSTICE
(Commercial List)
Pro
ceed
ing commenced at To
ront
o
NOTICE OF MOTION FOR A RECEIVER
BLAKE, CASSELS & GRAYDON LLB'
Barristers & Sol
icit
ors
199 Bay Street
Sui
te 4000, Commerce Court West
Toronto ON M5L 1A9
R. Seumas M. Woods LSO 4301691
Tel:
416-
863-
3876
s eum
as.w
oods
@bla
kes.
com
Erin Moult LSO #54002C
Tel:
416-863-4011
Fax:
416-863-2653
Lawyers for
the plaintiff
Tab 2
7 7 7 7
8 8 8 8
9 9 9 9
10 10 10 10
11 11 11 11
12 12 12 12
13 13 13 13
14 14 14 14
15 15 15 15
16 16 16 16
17 17 17 17
18 18 18 18
19 19 19 19
20 20 20 20
-15-
for the efficient administration of these proceedings, in the event that there is insufficient liquidity
in the defendants' estates.
AFFIRMED BEFORE ME at the City of Toronto, in the Province of Ontario on September 7, 2018
21
Commissioner for Taking Affidavits (or as may be)
S'Oritioth
/ r TIM RUTHE 'ffi RD
-15-
for the efficient administration of these proceedings, in the event that there is insufficient liquidity
in the defendants' estates.
AFFIRMED BEFORE ME at the City of Toronto, in the Province of Ontario on September 7, 2018
21
Commissioner for Taking Affidavits (or as may be)
S'Oritioth
/ r TIM RUTHE 'ffi RD
21 21
Tab 2A
22 22 22 22
23 23 23 23
24 24 24 24
25 25 25 25
26 26 26 26
27
- 5 -
ENTERED AT / 1NSCRIT A TORONTO ON / BOOK NO: LE / DANS LE REG!STRE NO:
AUG 10 2018
PER / PAR:
27
- 5 -
ENTERED AT / 1NSCRIT A TORONTO ON / BOOK NO: LE / DANS LE REG!STRE NO:
AUG 10 2018
PER / PAR:
27 27
28 28 28 28
29 29 29 29
30
Tab 2B
This is Exhibit "B" referred to in the Affidavit of
TIM RUTHERFORD
Affirmed before me this 7th day of September, 2018
A Commissioner, etc.
txKie I SL,i4.4 A
31
This is Exhibit "B" referred to in the Affidavit of
TIM RUTHERFORD
Affirmed before me this 7th day of September, 2018
A Commissioner, etc.
txKie I SL,i4.4 A
31 31 31
32 32 32 32
33 33 33 33
34 34 34 34
35
Tab 2C
36 36 36 36
37 37 37 37
38 38 38 38
39
Tab 2D
40 40 40 40
41 41 41 41
Tab 2E
42 42 42 42
43 43 43 43
44 44 44 44
45