About to be sold, Just for Laughs Group (JPR) will recover approximately 60% of the sum that was stolen from it last year in the wake of a classic email fraud. This affair will nevertheless have caused the insolvent comedy giant to lose several hundred thousand dollars.
After an initial recovery of $352,224 last March, the company will be able to recover approximately $135,000 – an amount that was in a BMO Financial Group account. Judge David R. Collier, who oversees proceedings taking place under the Companies’ Creditors Arrangement Act (LACC), welcomed the request from JPR’s lawyers on Friday.
The latter were trying to obtain a default judgment given that the numbered company holding the BMO account was showing no signs of life.
“We tried to notify the procedure and we had no sound and no image,” said M.e Patrick Lapierre. These are the latest attempts to recover the funds. For the rest, there were transfers in cryptocurrencies. At some point, it wasn’t worth pushing any further. »
Email fraud caused $814,000 to disappear from JPR’s coffers. In the end, a little over $325,000 will not be recovered. Since the comedy specialist is insolvent and has secured debts of around 21.5 million, every dollar counts, underlined Me Denis Ferland, lawyer for the controller, PwC.
Given JPR’s financial situation, having access to this sum [135 000 $] as soon as possible would be appropriate.
Me Denis Ferland, PwC lawyer, to the magistrate
The Press had lifted the veil on the fraud which caused JPR to lose hundreds of thousands of dollars from February to April 2023. The subterfuge used is based on the usurpation of the email of a director, a manager or a key supplier of ‘a company.
Read our text “Just for laughs victim of email fraud”
In the case of the company, the unknown fraudster imitated emails from employees of L’Équipe Spectra and Groupe CH (spoofing, in English). JPR subcontracted management services to Spectra and evenko. These two companies are controlled by the CH Group.
These fraud recoveries set the stage for further litigation between the insolvent company and its lawyers. A sum of around $66,000 was deducted from the first payment by Blakes, the law firm responsible for the file for JPR, as unpaid fees since last October. According to the monitor, Blakes was not entitled to this “compensation” since JPR is insolvent and immune from its creditors.
PwC is currently evaluating the offers received by the finalists who covet the humor specialist. The Press had revealed, on 1er Last May, a tandem formed by Cirque du Soleil and KOTV, ComediHa! as well as Groupe Entourage were the three Quebec contenders. Two groups from outside the province are also among the finalists.
The winner should be chosen very soon.
Read our text “Three Quebec options for Just for Laughs”
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- Potential buyers who had signed confidentiality agreements to have access to JPR’s books.
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