Court freezes assets of Mount Pearl businessman accused of fraud
Philip Chancey no longer has access to his bank accounts, including an Icelandic account in which he's alleged to be holding $996,000 obtained through a fraudulent deal.
Cox Automotive Canada wants the money returned. The auto leasing giant filed an application in the Supreme Court of Newfoundland and Labrador asking a judge to freeze Chancey's assets worldwide.
On Monday morning, a judge granted the application and ordered Chancey to provide a detailed accounting of where the money is within five business days.
Cox Automotive Canada alleges Chancey offered to sell them 744 cars seized in the United States at a discount. The company paid Chancey $1,000 US per car — about $1 million Cdn in total — but the cars were never delivered.
In his defence filed with the court, Chancey said the company didn't give him enough time to deliver on the deal.
Other lawsuits, similar allegations
There have been at least two other lawsuits filed recently in Canada with similar accusations against the Mount Pearl man.
Hickman Motors is suing Chancey for approximately $400,000, saying he promised to deliver 304 vehicles repossessed in the United States if they provided a $1,000 deposit for each one.
That claim has yet to be tested in court.
Alex Lyon and Son, an American auction house, sued Chancey in Nova Scotia and successfully froze his assets in December. The company alleged Chancey was behind a deal to provide a fleet of construction equipment repossessed in Texas.
The suit was dropped after $600,000 was placed in trust to be returned to Alex Lyon and Son.
In all three lawsuits, the plaintiffs questioned if the items Chancey promised to provide ever existed in the first place.
Chancey was also the subject of a fraud complaints with the Royal Newfoundland Constabulary in the spring, related to claims dating back to 2008 and 2016.
The status of that investigation is not known. When questioned by CBC News about the complaints, Chancey denied any criminal wrongdoing.
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