Milligan V. Lech
Milligan v. Lech is a action brought against Andrew Lech, a Canadian citizen and resident of Peterborough, Ontario.
The action seeks restitution or repayment of the monies that hundreds of individuals have placed with Mr. Lech for investment purposes. In the alternative, if the monies have not been invested, the action seeks damages for breach of trust.
The action is a "class proceeding" brought on behalf of "all persons who have invested monies with Lech and who do not opt out of this proceeding. No member of the class has collected monies, or solicited funds, or acted as an intermediary or agent, on behalf of the Lech." The plaintiffs, Donald and Mary Ellen Milligan, have agreed to serve as representative plaintiffs, on behalf of the class.
The Statement of Claim was issued on May 22, 2003 and served on the defendant on May 26, 2003. By order dated July 2, 2003, the action was certified as a class proceeding, and on the same date, KPMG Inc. was appointed Receiver and Guardian of the assets of the Class.
As set out in the "Plan of Proceedings", the plaintiffs first seek to determine what happened to the assets of the Class. It is estimated that Lech, either directly or indirectly, has received over 25 million dollars (Cdn) from Canadian investors and approximately 25 million dollars (US) from American investors.
As assets are discovered, the Receiver and Guardian will take steps to preserve and protect those assets on behalf of the class. After the amount of assets of the Class has been determined, the Receiver and Guardian will invite members of the class to submit a "Proof of Claim" to the Receiver, indicating the amount of the investors claim. These claims will be reviewed, approved or disallowed, and a proposed distribution of the assets of the class will be submitted to the Court for approval. Thereafter the assets will be distributed to the members of the class that have had their claims approved.
The amount of monies that the Class members will receive will depend on the amount of monies that are still in the possession, control or power of Andrew Lech.