Meshulam Riklis has been connected to a fraud case involving bankrupt Canadian retailer Dylex.
Hebrew daily “Yediot Ahronot” reports that Jewish millionaire Meshulam Riklis has been connected to a fraud case involving bankrupt Canadian retailer Dylex. The case is being heard in the Ontario Superior Court.
Dylex dominated malls across Ontario for the past 34 years. Dylex applied for bankruptcy in August 2001, and asked for a court appointed receiver to handle its affairs. Dylex was acquired by Hardof Wolf Group Ltd., whose parent company, McCrory Corp. of Pennsylvania, owned by Meshulam Riklis, filed for Chapter 11 bankruptcy protection in September 2001.
Last week, the trustees, Richler & Partners filed an affidavit to the Ontario Superior Court alleging that Hardof Wolf transferred millions of dollars to McCrory, while not paying debts to creditors.
Richter & Partners will petition the Ontario Superior Court to lift various protections of privilege and confidentiality, which will permit the trustee to continue its inquiry into Dylex.
Published by Israel's Business Arena on 4 March 2002