On paper, SEPUSAC v. 9706151 Canada Limited seemed like a routine mortgage enforcement dispute. A borrower defaulted, the lender sold the properties, and the matter looked destined for the standard path of foreclosure. 

But the case quickly revealed itself to be anything but ordinary. What unfolded over the next seven years exposed how vulnerable Ontario’s mortgage enforcement framework can be to abuse. Procedural stonewalling, shameless delay tactics, chaos, havoc, opaque numbered companies, and even the suing of a judge. 

This was the weaponization of the rules, deployed to exhaust a borrower, delay accountability, and deprive someone of their day in court. Along the way, the litigation raised hard questions about how far bad actors can push the system. 

To help unpack it, I’m joined by the lawyer on the side of the borrower, Neil Colville-Reeves. After diving into what he first thought was a straightforward enforcement matter, Neil found himself navigating the uncharted territory of predatory lending and fraud. 

What made this case anything but the typical foreclosure litigation? And how did Neil secure an outcome no one would have predicted: a client who entered homeless but emerged with title to his properties, mortgage-free?

In this episode, you’ll learn; 

• How SEPUSAC v. 9706151 Canada Limited illustrates systemic vulnerabilities in Ontario’s mortgage enforcement regime 
• Why rapid, improvident sales to numbered corporations signal potential fraud 
• The strategic use of CPLs, Rule 45 motions, and Mareva injunctions in exposing fraud and preserving assets 
• How defendants weaponized adjournments, discovery delays, and shell companies to obstruct proceedings 
• Why the civil justice system, premised on good faith, struggles when faced with shameless actors 
• The outcome: how a borrower who lost two properties in a predatory lending scheme ultimately recovered both, free of encumbrances

Guest Bio

Neil Colville-Reeves is the Managing Partner of Reeves Richarz LLP. Neil has a general commercial, estates, and insurance litigation practice and has handled a broad range of matters before the Ontario Superior Court of Justice, Ontario Court of Appeal, Financial Services Commission of Ontario, License Appeal Tribunal as well as advocating on behalf of his clients in private arbitrations. 

Neil manages a large and diverse subrogation practice and has experience in a range of matters, including construction/engineer liability, oil spills, fire and flooding losses, product failures, municipal infrastructure failures, first responder cases, and class actions. He also defends his insurer clients and policies in first-party and liability claims involving a broad range of property-related claims, including fire and flood loss cases. Neil has acted for clients in partnership and shareholder disputes, private road associations in negotiating member agreements, as well as litigating breach of contract, estates, and construction-related matters. Neil also practices injury law. He has represented the interests of a wide range of insurers, defending policy-holders and insurers in bodily injury claims as well as defending first-party accident benefits claims. His clients also seek out his advice and representation in priority and loss transfer disputes between insurers. In recent years, Neil has taken a particular interest in assisting clients facing mortgage enforcement proceedings who can be particularly vulnerable to unscrupulous lenders. In addition to practicing law, Neil spent two years in the securities industry working in corporate finance for an investment management/merchant banking firm. In that role, he dealt extensively with the community of investment advisors and financial planners and was involved in issues relating to corporate governance in publicly-listed companies. Connect with Neil on LinkedIn.

About Your Host

Areta Lloyd practices estate and trust litigation, with a particular focus on capacity litigation. She participates in public speaking, mentoring junior lawyers, and presenting courses on the topics of estates law, health law, and law practice management. Areta has written for several publications and wrote a column for the Alzheimer caregiver website ALZlive.com. She is on the Board of Directors of the Toronto Lawyers Association.

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