According to the court’s decision, the bank sought a summary judgment in its claim seeking to collect the unpaid balance of a loan that she agreed to, reportedly on the advice of a mutual fund rep, Neil Kumar, who worked for Shah Financial Planning Inc.
In 2019, Kumar was fined $250,000 and banned by the Mutual Fund Dealers Association of Canada (MFDA) for violating its rules by submitting falsified investment loan applications and failing to cooperate with the self-regulatory organization’s investigation.
In her defence, and in a counterclaim seeking $60,000 from the bank, Letrado argued that she assumed Kumar worked for B2B and that the bank should have known Kumar was borrowing money on her behalf and investigated him. She also argued that it breached its fiduciary duty or duty of care to her.
The court sided with the bank, granting summary judgment in its…