COURT ORDERS GRAHAM TO PAY $763,000

Court orders Graham to pay $763,000
Judge finds for Community Futures in fraud suit against former lending manager
By DONAL O"CONNOR, Staff Reporter
Stratford Beacon Herald
Posted 19 hours ago
The Ontario Superior Court has ordered Stratford businessman J.D. Graham to pay Community Futures Development Corp. of Perth County a total of $763,168 in connection with a fraud perpetrated against the company.
The amount includes special damages of almost $85,000 and costs of just under $96,000.
Graham was acting in a fiduciary capacity as a lending manager employed by Community Futures when the fraud was committed, Justice P.J. Flynn found in his judgment handed down today.
Graham, who has been an owner of the Stratford store P'Lovers Eco Lifestyle and who was an active member of the City Centre Committee, was not immediately available for comment.
Andrew Phillips, legal counsel for Community Futures, said the judgment marked "an important and very significant day" for the corporation.
"It is an organization that is not for profit and which works hard to support entrepreneurs in Perth County," Phillips said. "It's not a happy day but it's an important day for Perth CDC because the judgment demonstrates there must be accountability when the care and management of public money is involved."
In statements of defence filed earlier with the court, the owners of P'Lovers had denied allegations that P'Lovers benefitted from funds misappropriated from the development corporation. But Graham had admitted to breaching his fiduciary duties at Community Futures to obtain personal financial benefits from the corporation.
The development corporation alleged that more than $540,000 had been fraudulently diverted to its detriment and sought $1 million in recompense and damages.
P'Lovers continues to operate under conditions imposed by a court injunction.
The court judgment says as well that some of the proceeds of the fraud have been traced to the property known as 557 Albert St. and that Community Futures may continue the action against the defendants, Susan Graham and Planet Lovers (P'Lovers) Ltd.
There has been no judgment against Susan Graham.
doconnor@bowesnet.com