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Case ID: 5141 | Stocks | 07/28/2008
It was supposed to be the deal of a lifetime -- put down less than $30,000 in cash and get a tax receipt for $100,000.
Today, the young Oakville couple who bought that dream are the lead names in a Hamilton law firm's planned nationwide class action suit looking for more than $50 million in damages. At the centre of the action is Toronto-based Banyan Tree Foundation. Last year it was ranked as the third largest charity in Canada because of the volume of money it raised, but today it faces being cut from the country's list of approved charities and as many as 65,000 people who donated to it and similar programs face having to pay up to $63 million in back taxes plus penalties and interest. Kathryn and Rick Robinson, the Oakville couple who have become the lead plaintiffs in the suit, are typical of the people ensnared in the plan. It worked like this: in exchange for putting down small amounts of cash as a donation and a security payment, donors to the Banyan program could then take out a larger loan from a related company and claim the entire amount as a tax deductible donation to charity. The security deposit was to be invested for the benefit of all participants. According to their statement of claim, which has yet to be proven in court, the Robinsons took part in the program for three tax years. They pledged a total of $90,000 in charitable donations, putting down more than $34,000 in cash, taking out $103,000 in loans and getting a tax receipt for more than $120,000. That pot of gold turned into a chamber pot when the Canada Revenue Agency refused to allow the tax deductions on the grounds the company through which the loans were arranged didn't have the money, so rather than cash for charity, all that was generated was a circle of accounting entries. The Robinsons were ordered to pay back more than $21,000 in taxes and interest for one year, with the warning reassessments were coming for other years they took part in the program. The statement of claim in the lawsuit also names Promittere Capital Group Inc., Promittere Asset Management Ltd., Rochester Financial Limited and the Toronto law firm of Fraser Milner Casgrain LLP. It is accused of issuing favourable tax opinion letters on the program. Also named is Robert Thiessen, of Toronto. He is identified as an officer and director of Promittere Capital and Promittere Asset as well as president and director of Banyan Tree. For more information, please contact the Scarfone Hawkins LLP lawyers, http://www.scarfonehawkinsllp.com/default.asp, or call 905-523-1333. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Internet service companies are more necessary than ever in today’s high-tech economy. Several class actions have been filed against the officers and directors of telecommunications networking equipment provider Redback Networks, Inc. (Nasdaq: RBAKQ) by stockholders who purchased the company's common stock between April 12, 2000, and October 10, 2003. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against specialty pharmaceutical company American Pharmaceuticals Partners, Inc. (Nasdaq: APPX) and certain of its officers and directors by stockholders who purchased the company's common stock between February 19, 2002, and September 24, 2003. A class action has been filed against Bernard L. Schwartz, chairman and chief executive officer of satellite communications company Loral Space & Communications Ltd. (Pink Sheets and OTCBB: LRLSQ, formerly NYSE: LOR) by stockholders who purchased the company's common stock between June 30 and July 15, 2003. According to a law firm press release, a class action was filed against real estate developer Perini Corporation. The complaint charges Perini and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Perini and its subsidiaries offer general contracting, construction management, and design-build services to private clients and public agencies worldwide.
On April 01, 2008, a notice of non-opposition in regards to the amended motion of the institutional investors group for the appointment of lead plaintiff and lead counsel was filed by Bankinter Gestion De Activos. Just as quickly, minutes of order explaining about the possible dismissal due to the absence of show cause was entered on May 23, 2008. Hence, the court ordered the plaintiffs to show cause why this action should not be dismissed for lack of prosecution and a time frame for submitting related materials has been set.
A class action has been filed against Oppenheimer Funds, Inc. (NYSE: OPY), it’s subsidiaries, and certain of its individual funds, officers and directors by stockholders who purchased the company’s common stock between August 31, 1999 and March 22, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. |
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