Widow of QuadrigaCX’s CEO tries to keep properties away from creditors

06 Feb, 2019 | Updated: 06 Feb, 2019
by Joeri Cant
News
Widow of QuadrigaCX’s CEO tries to keep properties away from creditors

The widow of QuadrigaCX's CEO, Jennifer Kathleen Margaret Robertson, appears to be trying to keep 4 Nova Scotia properties out of the hands of future creditors.

In documents obtained by the Chronicle Herald, it shows that Robertson has removed her deceased husband’s name of 4 properties located in the province of Nova Scotia, Canada, which were left to her in a will that Cotten filed just 12 days before his death.

Read more: QuadrigaCX CEO filed a will 12 days before his death

It appears that Robertson is trying to protect the value of these 4 properties in Nova Scotia from future creditors. These four properties represent a total value of $1.1 million.

Even though this move isn't exactly considered to be illegal, the action of moving the ownership of the 4 properties into a trust, is to say the least, a very suspicious decision on the part of Robertson.

Read more: Looking for QuadrigaCX CEO's death certificate? Here it is

Apparently the primary residence of Robertson has since yesterday a sold sign in front of the property. The three remaining properties are plots of land, of which two are already covered into the trust.

Daren Baxter, a partner at McInnes Cooper in Halifax, Nova Scotia, said taking out a mortgage in favour of a trust is a technique sometimes used to protect certain assets from future creditors.

However, Baxter further pointed out that 'this would only work for future creditors; existing creditors cannot legally be defeated in this way.'

'Is it a good move from a legal perspective? Absolutely', Baxter said.

'You might be setting yourself up for a fight with creditors in the future but if I was the client I’d much rather have all this structure set up so I don’t automatically lose the property to the creditors'

'I put a big roadblock in the way, they probably have to go to court and try to challenge all this, it’s a big hurdle and gives the client some negotiating power.'

Read more: 5 conclusions of the QuadrigaCX hearing

Paul Trudelle, a laywer and partner at the Hull & Hull law firm in Toronto, said that it is possible Robertson is trying to protect her personal property and in particular her interest in these properties.

He added that Robertson will keep ownership of the 4 properties unless there’s some fraudulent reason 'to set aside the right of survivorship'.

'It’s very hard to pierce the corporate veil and go after the directors or shareholders unless it's obviously a scam or fraud.'

'It’s unusual, and the fact that it’s happening so quickly and right now, it raises questions', Trudelle concluded.

Chepicap will keep you up-to-date on this developing stroy line.

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