The federal government has filed a $25-million statement of claim accusing Tony Merchant’s law firm of overbilling for legal services and falsifying documents to cover it up, in a scheme to defraud Canada.
The civil suit, filed in the Court of Queen’s Bench for Saskatchewan, claims the Merchant Law Group should repay $25 million, plus interest, and cover the costs incurred by taxpayers in an eight-year legal battle.
“The government is taking legal action to recover public money that was paid to this firm as a result of serious misrepresentations,” a Department of Justice spokesperson told CBC News in an email.
Allegations not proven
None of these allegations have been proven in court.
In an emailed statement to CBC News, the Merchant law firm said that it “denies that any of the government’s concocted allegations have merit or any basis in reality.” Merchant has 20 days to file a statement of defence.
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