Winnipeg Free Press
Monday, February 27th, 2006
By Dan Lett
A Florida court has dismissed a lawsuit alleging that Winnipeg entrepreneurs David Wolinsky and Costas Ataliotis defrauded a wealthy investor in Maple Leaf Distillers.
Lawyers for Wolinsky and Ataliotis, principals of Maple Leaf Distillers, argued earlier this month that a suit brought by Dr. Selvin Passen in Florida was a "hodge-podge of allegations" that did not clearly identify whose interests were being pursued and who was being sued.
It was further argued that Passen, who also sued as a shareholder of Protos International, a related company with an interest in Maple Leaf Distillers, did not "comply or provide any statutory basis for his right to bring" the suit forward.
The court granted the motion to dismiss on Feb. 15, and gave Passen 14 days to re-file his claim.
Passen's lawyer, Richard Beauchamp, said in an interview he will be re-filing the suit with all of the original allegations and causes of action.
Beauchamp said the motion to dismiss brought by the lawyer for Wolinsky and Ataliotis dealt with procedural issues, and did not respond to the substance of the suit's original allegations.
A copy of the Florida court file, obtained by the Free Press, indicates that the defendants have not yet filed their defence to the allegations in Passen's original complaint.
In the suit filed in the 17th Judicial Circuit Court in Broward County, Fla., Passen claimed Wolinsky and Ataliotis, principals of Maple Leaf Distillers and Protos International, misrepresented the performance and value of their companies to induce Passen to invest.
Passen alleged he was convinced by Wolinsky and Ataliotis to trade a $1.4-million US condominium in Florida in exchange for stock in Maple Leaf Distillers, which he claims was worthless, and a promissory note for $525,000 US. Passen further alleged the condominium was misappropriated by Ataliotis and his wife, Suzanne Ataliotis, for personal use.
dan.lett@freepress.mb.ca