Canada

Businessman files $300K lawsuit against ex-PM Mulroney

Former prime minister Brian Mulroney is facing a $300,000 lawsuit filed in Toronto by German-Canadian businessman Karlheinz Schreiber.

Brian Mulroney is facing a $300,000 lawsuit filed in Toronto by a German-Canadian businessman.

Karlheinz Schreiber, seen in 2004, is currently fighting extradition to Germany on charges of bribery, fraud and tax evasion. ((Aaron Harris/Canadian Press))
Karlheinz Schreiber alleges that after the former prime minister retired from politics in 1993, he agreed to help Schreiber build a production facility for light armoured vehicles in Quebec. The lawsuit, filed in Ontario Superior Court, alleges Mulroney reneged on that agreement.

Schreiber alleges he provided Mulroney $300,000 in cash in 1993 and 1994 as an advance, but that he never received the services he paid for, according to a statement of claim filed Thursday.

"The defendant defaulted on the delivery of said initial services by failing to advance the establishment of the Bear Head project," the document says.

Schreiber's lawyer, Richard Anka, told CBC News the claim is straightforward.

"Mr. Schreiber says Mr. Mulroney hasn't performed those services and he wants his money back. It's as simple as that," Anka said Friday.

None of the allegations have been proven in court.

Mulroney's lawyer in Toronto, Ken Prehogan, told CBC News that his client has not yet seen the statement of the claim. Mulroney says he does not owe Schreiber anything, sources have told CBC News.

Schreiber, meanwhile,is also asking for interest that would have accrued on the $300,000.

Restaurant business also mentioned

The statement of claim alleges that Schreiber attempted, on numerous occasions, to outline what Mulroney owed him, "demanding the services to be performed by the defendant."

Schreiber allegedly made various attempts to collect his advance but Mulroney refused to pay back the money, the document claims.

It also touches on another business owned by Schreiber — Reto and the Machine Restaurant in Toronto. Schreiber alleges Mulroney was supposed to help him promote and expand therestaurant but never did, according to the statement of claim.

"Unless this matter is resolved privately between the parties, [Schreiber's] intention is to take it to the very end," Anka told CBC News.

Lawyers contacted by CBC News have suggested that because the alleged events happened so long ago, Schreiber may have a tough sell in court.

Schreiber, who lives in Toronto and Ottawa, is currently fighting extradition to Germany, on charges of bribery, fraud and tax evasion.