UPDATE OF CFDC SCANDAL- STRATFORD BEACON HERALD

Plaintiff in suit accepts some allegations
By DONAL O'CONNOR STAFF REPORTER
In statements of defence filed with the Ontario Superior Court the owners of Planet Lovers (P'Lovers) deny allegations brought by Perth Community Futures Development Corp. that their company benefited from funds misappropriated from the development corporation.
But the statement of defence submitted by company co-owner JD Graham does admit he breached his fiduciary duties at Community Futures to obtain personal financial benefits from the corporation.
The defendants, JD Graham and Susan Graham, also state they have "insufficient knowledge to plead" to a number of other specific allegations made in the statement of claim from Community Futures.
As reported earlier, the statement of claim alleges that JD Graham, when he was employed as loans manager with Community Futures prior to the end of April 2011, fraudulently diverted loan advances for legitimate borrowers to his company or personal accounts.
The development corporation alleges more than $540,000 was fraudulently diverted to the detriment of Community Futures and is seeking $1 million in recompense and damages from the defendants.
None of the allegations has been proven in court.
In their separate statements of defence, the Grahams deny that their company, in which they have shared ownership, benefited from alleged misappropriation of funds by JD Graham.
In her statement, Susan Graham denies receiving any personal benefit from misappropriated funds or that Planet Lovers (1394561 Ontario Limited) gained from JD Graham using personal and company bank accounts as a vehicle to deposit such funds.
The Grahams' Stratford and London stores continue to operate under conditions imposed by a court injunction. JD Graham is no longer a director of the business.
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