Schreiber loses latest appeal to stay in Canada

The Supreme Court of Canada has dismissed Karl Schreiber's latest appeal to avoid extradition to Germany.

But it is unclearwhat legalavenues remain for theGerman-Canadian businessman, who is wanted in Germany on charges of bribery, tax evasion, fraud and breach of trust.

Before the decision was released, lawyers for Schreiber went to Federal Court to file another action challenging Ottawa's decision to extradite him.

A spokesman for the federal Justice Departmenttold the Canadian Press thatthe net effect is that Schreiber remains in Canada for the time being.

In 2004, the Ontario Superior Court ruled Schreiber could be extradited to Germany. He has lost subsequent appeals to the federal Justice Department, the Ontario Court of Appeal and the Supreme Court.

RCMP arrested him in Toronto on Sept. 2, 1999, at the request of German authorities. Since then, he has been living in Toronto and Ottawa while fighting extradition.

The German charges stem from a deal for the sale of German army tanks from arms manufacturer Thyssen AG to Saudi Arabia. German authorities allege that Saudi Arabia was defrauded in the course of that deal.

Schreiber denies the charges.

Schreiber has argued his arrest in Canada was illegal because Germany's extradition treaty with Canada does not include allegations of tax crimes.

In another legal battle, Schreiber sued former prime minister Brian Mulroney earlier this year to recoup $300,000, plus interest, that he alleges Mulroney owes him.

In a statement of claim, Schreiber argued he gave Mulroney the cash as an advance in the early '90s, but that Mulroney never followed through with his business commitments to help build a production facility for light-armoured vehicles in Quebec, and establish a pasta business in Ontario.

Mulroney has denied the charges.

An Ontario court ordered Mulroney on July 24 to pay Schreiber $470,000 in a default ruling, saying Mulroney had failed to file a statement of defence in time.

But in August, an Ontario judge set aside the order.