Judge rejects Nygard bid to use money from firms in receivership to pay criminal case lawyers
CBC
A Manitoba judge has rejected a request by disgraced fashion mogul Peter Nygard to use money from his companies currently in receivership to pay his criminal defence lawyers.
Nygard is appealing the decision.
Nine Nygard companies have been under court-appointed receivership since March 18, 2020.
Recent documents filed in the case show since that time the receiver, Richter Advisory Group Inc., took in more than $121 million and paid out more than $42 million to clear up company debts.
The court records show as of May 2021, $12.8 million remains after the sale of company assets.
Court filings also indicate the Nygard companies owe $3 million to the Canada Revenue Agency, although the court has not yet authorized that payment
Court records filed between December 2021 and March 2022 show Nygard wants to use $1.15 million from the $10 million being held in trust by the receiver to pay for legal fees.
The $10 million includes the proceeds of Nygard's Falcon Lake Cottage, a property that was not part of the receivership.
Since the start of the receivership, Manitoba Court of Queen's Bench Justice James Edmond approved the sale of four properties owned by the Nygard companies on Broadway, Notre Dame Avenue and on Inkster Boulevard, as well as the company's Toronto headquarters.
He also approved the liquidation of fashion merchandise, furniture and fixings from Nygard retail stores.
Nygard, 81, is currently being held in a Toronto jail awaiting trial for sexual assault and forcible confinement on allegations dating back 40 years.
Last December, Nygard's lawyers filed a notice of motion in the receivership asking a judge to authorize the distribution of $1.15 million from the net receivership proceeds to Nygard Properties Ltd. (NPL) for "payment of certain legal fees incurred, or to be incurred, by Peter J. Nygard personally in connection with the defence of certain criminal charges laid" by the Toronto Police Service and the request for his extradition to the United States for various charges relating to sex trafficking.
The court filings break down how that money, totalling $500,000, would be spent:
The court records say the rest of the money would go to his insolvency lawyers: