CEF: Higgerty Law Statement of Claim Section O – Liability of Shepherd’s Village Ministries Ltd. and the Officers and Directors of Shepherd’s Village Ministries Ltd.

This article is part of the series from the Higgerty Law statement of claim. You can read what a statement of claim and a Quistclose Trust is in the first article in this series.

This section alleges that

• the Shepherd Valley Ministries Ltd shared directors with the District,
• the directors knew what they were doing was wrong and did it anyway,
• that the forgiveness of a $12M loan to SVML wasn’t in the interest of the depositors,
• and this makes them liable to the depositors.

Please note that these are allegations only and this case has not been adjudicated in a court of law. As always, if you have any legal questions or need legal advice please consult appropriate legal counsel.

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From Higgerty Law Statement of Claim

O. Liability of Shepherd’s Village Ministries Ltd. and the Officers and Directors of
Shepherd’s Village Ministries Ltd.

183. SVML and the ABC District were at all times material hereto under common control.

184. Further:

a. SVML and the ABC District and their respective Officers and Directors were subject to the same governance and administration policies established by LCCFM with respect to funds deposited in the CEF;
b. SVML and its Officers and Directors knew of, or were willfully blind to, the existence of the CEF Trust or in the alternative, the existence of the CEF Quistclose Trust.
c. All of the Officers and Directors of SVML were members of a Lutheran congregation.

185. SVML and its Officers and Directors knew or were willfully blind to the fact that the Shepherd’s Village Lands had been purchased with monies obtained from the CEF Trust or the CEF Quistclose Trust, that the proceeds of the Shepherd’s Village CEF Loans originated in the CEF Trust or in the alternative in the CEF Quistclose Trust, that the Loans made to it by ABC District were in breach of the CEF Trust or alternatively the CEF Quistclose Trust, and that the ABC District had forgiven $12 million of the Shepherd’s Village CEF Loans, all of which was done pursuant to a dishonest and fraudulent scheme which was for the benefit of SVML and not for the benefit of the beneficiaries of the CEF Trust and the CEF Quistclose Trust, and which constituted a risk and prejudice to the interests of the beneficiaries of the CEF and Quistclose Trusts that SVML and its Officers and Directors knew that the ABC District was not entitled to take.

186. SVML and it Officers and Directors knowingly participated in and facilitated the breach of trust by the ABC District.

187. Further, SVML and its Officers and Directors are liable to the Plaintiffs and putative Class and Sub-class members for knowing receipt of the Shepherd’s Village Lands and the proceeds of the SVML CEF Loans acquired in breach of trust, and are a constructive trustee or alternatively a resulting trustee of the Shepherd’s Village Lands and the proceeds of the SVML CEF Loans for the benefit of the Plaintiffs and putative Class and Sub-class members.