DaimlerChrysler Canada has recently won a court judgment in New York to begin seizing assets to recover $US330 million from Castor Holdings Ltd., a defunct Montreal-based holding company and real estate lender formerly headed by Wolfgang Stolzenberg, a German-Canadian businessman suspected of orchestrating one of Canada’s most colossal fraud scams, writes Monica Dobie.
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The Windsor, Ontario-based automaker’s employee pension fund was among Castor’s largest investors with approximately $Can176 million that was lost when the company went bankrupt in 1992.
Unpaid interest was capitalised on Castor’s books as increases in existing or new loans, making Castor look prosperous even though it was technically insolvent for the three years leading up to its bankruptcy.
