Ford denies he botched late brother’s estate

Ontario Progressive Conservative TORONTO Leader Doug Ford is denying allegations that he mishandled the estate of his late brother Rob Ford, causing financial harm to the late mayor’s widow and two children.

The allegations, which have not been proven in court, were contained in a lawsuit filed by Renata Ford and her two children in Ontario Superior Court.

The plaintiffs — Renata Ford and her children — accuse Doug Ford, who was the trustee of her husband’s estate, and his brother Randy of breach of trust and “negligent mismanagement” of the family businesses, which were started by their father.

The statement of claim alleges that after the death of Doug Ford Sr., the responsibility for the management and direction of the Deco Companies was assumed by Doug Ford and Randy Ford and they have since destroyed the value of the companies.

“After the death of Doug Sr., the responsibility for the management and direction of the Deco Companies was assumed by Doug Ford and Randy Ford. During the period of time when the defendants were officers and directors of the Deco Companies and in complete control of their operations, businesses and affairs, they have so negligently and improperly mismanaged them as to destroy their value,” reads the statement of claim. It further alleges Doug and Randy Ford arranged for and received very significant compensation from the Deco Companies, including extravagant salaries, bonuses, travel and car allowances and other benefits, which were paid regardless of the financial performance of those businesses. “The defendants grossly overcompensated themselves at the expense of the Deco businesses and their shareholders and stakeholders, and gave no thought to whether or not their continued employment and levels of compensation were reasonable or appropriate in the circumstances,” says the statement of claim. “The defendants improperly arranged for friends and family members to be employed by the Deco Companies, in positions which were unnecessary or for which they were not qualified.”

The statement of claim alleges that as Doug Ford pursued a political career he continued to receive salary and compensation from the Deco companies.

“Doug Ford, in his capacity as a director and senior officer of the Deco Companies believed that Randy Ford was an incompetent manager who was not qualified to

be a senior executive Nevertheless, Doug Ford continued to support his brother in his position as a director and senior officer of the Deco Companies, and moreover left much of the operational responsibilities to Randy Ford during his political career. After deciding to devote himself primarily to politics and other interests, Doug Ford nevertheless maintained his position as an officer and director of the Deco Companies, and arranged to continue to receive very extravagant compensation, notwithstanding that the businesses were losing money,” says the statement of claim.

The statement of claim, a copy of which was posted online by the Toronto Sun and the Toronto Star, alleges that Doug Ford knowingly and deliberately put Renata Ford and her children in a “highly stressful and unfair financial position” after her husband’s death in 2016. The lawsuit seeks damages in excess of $15 million from the defendants.

“The plaintiffs state that the deliberate, repeated and ongoing misconduct of the defendants is sufficient to justify the award of punitive damages against them. The defendants’ misconduct was calculated, in breach of their trustees’ duties, concealed by them, and arose in the context of multiple conflicts of interest which they willingly embraced to benefit themselves.

“In effect, the defendants mismanaged the Deco Companies to the point of insolvency, and then plundered Doug Sr.’s Estate to maintain the illusion that they were successful businessmen and to retain their offices and compensation.”

The lawsuit alleges that their misconduct was prejudicial to the interests of the plaintiffs. Doug Ford said Monday in a statement that the allegations were completely false and he would fight them in court. “These claims relating to Deco are completely false and we will strongly refute them in court,” said his statement. “I have also stood by my brother and his family through so many of their challenging times, and will always be there for Stephanie and Dougie. “Renata’s lawyers have been clear to us throughout this campaign, that either we hand over money, or they would go public with these false claims, and that is exactly what they have done, with three days to go until the election.” Diane Ford, Doug and Rob Ford’s mother, also provided a statement to the Toronto Sun denying the allegations.

“It is heartbreaking that Renata has chosen to bring forward these false and baseless allegations against our family, right in the middle of the provincial election campaign,” Diane Ford said. “As a family, our one goal is to ensure Rob’s children are cared for and their financial futures are secure. Renata has serious struggles with addiction, and our hope is that she will accept help for the sake of herself and my grandchildren.”