Sunterra Farms of Alberta has filed an appeal against convictions for cheque kiting.
U.S. Justice Michael Lena wrote in his January decision that “I find that Sunterra Canada made false representations knowingly, intending that they be relied on, which (lender0 Compeer (Financia) did rely on, suffering the noted losses.”
Compeer petitioned Sunterra’s businesses into bankruptcy and sold them to Tyson Foods.
The Canadian operation is seeking protection from creditors under federal legislation.
President Ray Price and two other employees had been named in the suit, but Lema found only the Price liable, saying he directed and oversaw the fraud.
The appeal documents say that Lema found Price liable without finding evidence of personal gain.
They say that conclusion was based on common sense inference rather than the legal test for fraudulent misrepresentation.
As well, the documents suggest the cause of Compeer’s loss was the wrongful retraction of cheques between the lenders.
