Ricova | Transactions through Panama, lawsuit says

Ricova, which has a virtual monopoly of recycling in Montreal, would have sold dozens of containers of Quebec paper by being paid in a subsidiary in Panama, a tax haven.

Philippe Teisceira-Lessard
The Press

At least that’s what a civil lawsuit alleges that last week got the first green light from the Superior Court: an Italian buyer, Galtrade, claims to have paid tens of thousands of dollars into a Panamanian account in 2017. for bales produced and loaded in Montreal and negotiated with Ricova’s parent company, on the South Shore.

After a negotiation with Ricova, the final contract would have been made in the name of Ricova Corp., a twin company based in Panama, according to Galtrade.

Galtrade says, however, that she never received the bales she bought. In 2017, she therefore launched a lawsuit in Quebec against Ricova’s parent company, which responded by pleading that the contract did not concern her.

The Panamanian Ricova, which shares the same name, the same lawyer and the same logo as the Quebec Ricova, “is not part of the Ricova group”, argued the company. Justice, at first instance and then on appeal, agreed with him.

“Ricova Int. [du Québec] cannot be held contractually responsible for the failure, if any, of Ricova Corp. [du Panamá] to fulfill its obligations,” the Superior Court wrote in 2019. Quebec justice cannot arbitrate a dispute between a South American company and an Italian company, the court added.

The lawyer also targeted

Galtrade therefore turned to Ricova’s big boss, Dominic Colubriale, as well as Ricova’s lawyer to hold them personally responsible for the losses incurred.

Last Monday, Superior Court Judge Chantal Masse gave her approval for this lawsuit to go ahead. “In light of the elements currently on file […]a reasonable and prudent person cannot conclude that there is no basis for claiming tort liability or abuse of process by Colubriale and Ricova Int. [du Québec] “, can we read in the decision.

Evidence suggests that Mr. Colubriale would have been personally involved in the transfer of the transaction from Quebec to Panama, underlines the judge.

Ricova’s lawyer, M.^and Maria Ouazzani, will also have to explain herself: Galtrade accuses her of having “presented a thesis reporting an absence of link between the companies [nommées Ricova] knowing it to be false”. “The fact that she was employed by Ricova Int. [du Québec] while representing Ricova Corp. [du Panamá] is […] a troubling element in the context of this case, the decision states. Ouazzani’s good faith is under attack. There is evidence on the record that supports these allegations. »

Judge Masse’s decision does not presume the responsibility of Dominic Colubriale and Mr.^and Ouazzani. She simply authorizes Galtrade to pursue them.

Before rendering her decision, judge Chantal Masse notably took note of an examination under oath carried out with the Ricova employee who negotiated the sale of recycled paper containers with Galtrade.

“I think, when it was Europe, you had to do contracts or whatever through the Panama office,” said Ricova’s former sales manager in Canada, Tony Tempestili. The contract between Galtrade and Ricova “was not concluded in Panama and the goods come from here, from Canada”, he added.

To his knowledge, the Panamanian Ricova was run by Mr. Colubriale from the South Shore of Montreal. “He was the boss,” said M Tempestili.

Mr. Tempestili even recognized his own signature at the bottom of the contracts between Galtrade and the Panamanian Ricova. Ricova argues instead that it was a Panamanian employee of the Panamanian company who signed the contracts and that Mr. Tempestili’s assistance was sought because he speaks French.

“More precise lighting”

Ricova did not respond to request for comment from The Press.

Galtrade spoke through Xavier Ros, its representative in Quebec. “We’re happy with the judging,” he said. It goes in the direction of what we asked. Given what has become known recently, this is a more specific light on how Ricova works. »

M^and Jean-François Noiseux, lawyer for Maria Ouazzani, did not comment.