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October 05, 2012 Jonathan H. Fine

Justice David M. Brown Finds That Manzoor Moorshed Khan Orchestrated a Massive Fraud

MTCC 710 v. Khan et al

Most readers will be aware that several condominium corporations in the Toronto area were allegedly defrauded of millions of dollars by their former management company, Channel Property Management, and its principal, Manzoor Moorshed Khan, who arranged phony loans in the names of the condominium corporations and then absconded with the loan proceeds.

In this case, Khan and Channel rigged the tender process for certain repair work so that a company controlled by Khan won the contract valued at about $1.2 million.  Khan then subcontracted the work to another company for about half the price and pocketed the difference.  In addition, Khan forged the signatures of directors on contracts and cheques, and  also submitted invoices to the corporation for work that was never authorized by the board, tendered nor performed.  The directors relied on and trusted Khan to honestly manage the corporation and to look out for the corporation’s best interests.  Clearly, this was not the case.

A summary judgment motion was heard by the Superior Court of Justice on May 22, 2012.  Justice David M. Brown held that MTCC 710’s evidence in this matter “…overwhelmingly established that Khan orchestrated a massive fraud against MTCC 710 by using Channel 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.”  MTCC 710 was granted judgment in excess of $1.3 million.  In addition, MTCC 710 was awarded costs in the amount of $105,876.19. Click here to view the Reasons for Decision.

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Jonathan H. Fine

Jonathan H. Fine Partner

B.Sc., J.D., F.C.C.I.

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