3 firms tied to Liberal Andrew Harvey defaulted on ACOA loan

Three companies that list Carleton-Victoria Liberal candidate Andrew Harvey as a director have yet to repay Ottawa for a loan default, CBC News has learned.

That’s despite two court judgments requiring them to repay the Atlantic Canada Opportunities Agency.

“ACOA made one contribution of $225,000 for which the three companies, Harvey Lumber Ltd., Aberdeen Farms Ltd. and Shikatehawk Maple Products Ltd. had joint liability,” ACOA spokesperson Robert Bourgeois says in an e-mailed statement.

“No repayments have been made to ACOA for this contribution.”

The Court of Queen’s Bench issued the orders to Harvey Lumber, and Aberdeen Farms in 2011 and Shikatehawk Maple Products in 2012.

According to the court documents, ACOA agreed to offer the company “non-repayable contributions” totally $225,000 in 2005.

The money was only repayable if the companies defaulted, according to ACOA’s court filing.

Aberdeen Farms was dissolved in 2008 and ceased operations, and Harvey Lumber filed for bankruptcy in September, 2009.

The corporate registry listing for the third company, Shikatehawk Maple Products, says it intends to dissolve as well.

Court records list two separate judgments: against Harvey Lumber and Aberdeen farms for $225,000 plus interest of $825, and against Shikatehawk Maple Products for $228,977.12 plus $728.98 in interest.

The agency filed the lawsuit in March 2009.

Andrew Harvey is listed as a director for each of the three companies, along with his brother David and father Fred.

“I have no comment,” Harvey said when reached by phone on Monday.

According to ACOA’s 2009 statement of claim, the agency issued a letter of demand to the three companies for repayment in February 2009. ACOA alleged none of the companies had made any repayments under the terms of the loans.

At first, the companies disputed some of ACOA’s claims.

“The defendants admit owing the plaintiff moneys but dispute the amount claimed,” Ian Purvis, a lawyer, wrote in a statement of defence in June 2009.

But Purvis later withdrew as the lawyer for two of the companies, Harvey Lumber and Aberdeen Farms.

Norah Davidson-Wright, ACOA's lawyer, pushed the court for a ruling of default against those two companies.

In March, 2012 Shikatehawk Maple Products withdrew its statement of defence in the case, and that December, the court entered a judgment against the company for $228,977.12 plus $728.98 in interest.

Last week, Liberal Leader Brian Gallant said Andrew Harvey was suspended as a Liberal after it was revealed he had been charged with fraud and forgery in a separate criminal case involving Crown wood.

The two cases are not related.

Harvey can continue to campaign as a Liberal because the deadline had passed for changes to the official list of candidates.

But Gallant said if Harvey is elected, he won’t sit as a Liberal MLA in the Legislature until he’s cleared of the charges.

Harvey said in a written statement last week the criminal charges were “without merit” but that he accepted the suspension by Gallant pending his trial.

He acknowledged he hadn’t told Gallant or the party about the charges when they laid in July.

The Liberals review the backgrounds of all prospective candidates before they can run for nomination, but the charges against Harvey were laid after he went through the process.

Party officials have yet to respond to a CBC question about whether the ACOA case was raised during the background-check process.