Montreal businessman denies owing bank for alleged debts of company linked to Anne Squires
A Montreal businessman has filed a statement of defence to a lawsuit brought against him in Newfoundland over alleged debts owed by a numbered company linked to Exit Realty on the Rock owner Anne Squires.
The Bank of Montreal sued Shawn Frank last month, alleging that he is on the hook for $119,400, plus costs, related to a guarantee he provided for an unpaid debt owed by 71353 Newfoundland and Labrador Inc.
In court documents, Frank says he does not owe the bank any money.
"The defendant denies that there is an amount outstanding under the guarantee, and puts the plaintiff to the strict proof thereof," the statement of defence notes.
Anne Squires and Frank's wife Elisa Fremeth are the two directors of 71353.
The same day the Bank of Montreal sued Frank, it filed actions against Squires personally over debts incurred by Exit Realty on the Rock and 71353.
However, there is no evidence in the court file that alleged debt owed to the bank by 71353 is the same debt owed to the bank by Exit Realty on the Rock.
Once accused in telemarketing 'scams'
Frank was once accused by federal regulators of running a $60-million deceptive telemarketing operation.
However, a series of court delays led a Quebec judge to stay the charges in 2013, and the case never went to trial.
CBC News revealed in February that Frank and his two brothers were the founding directors of Exit Realty on the Rock when it was launched in 2004.
The Frank brothers were delisted as directors shortly after the company was incorporated more than a decade ago.
There is no evidence they have played a role with the real-estate firm since.
Investigation of Squires continues
Squires is under investigation for theft, fraud and breach of trust.
- Exit Realty on the Rock investigation expected to take at least 6 more months
- Anne Squires under RNC investigation for theft, fraud and breach of trust
The police investigation is expected to last until the end of 2016.
A provincial court judge is scheduled to hear a police application next month to retain items seized by a search warrant executed at Exit Realty on the Rock's head office in February.