Bank of Montreal sues Anne Squires over loan guarantees

The Bank of Montreal has filed two new lawsuits against Exit Realty on the Rock owner Anne Squires, seeking hundreds of thousands of dollars for defaulted loans to two companies debtsthe bank says she personally guaranteed.

One statement of claim seeks $300,000 plus legal fees and other costs related to debts owed to the bank by Exit Realty on the Rock.

The second seeks repayment of $321,000 for a personal guarantee allegedly given by Squires for the debt of a separate numbered company.

The bank's claims have not been proven in court, and Squires has yet to file a statement of defence.

In February, the Bank of Montreal pushed Exit Realty on the Rock into receivership, after provincial regulators suspended its real estate licence.

Last month, Supreme Court Justice Robert Stack approved the bank's request to make the process a court-appointed receivership.

The receivership is expected to be back in court soon, to sort out the process that willdetermine the priority of claims by creditors.

Latest legal troubles

The two new lawsuits filed by the bank are the latest in a series of legal troubles facing Squires since the sudden collapse of Exit Realty on the Rock.

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The Royal Newfoundland Constabulary executed search warrants at the real estate firm's head office on Kenmount Road in St. John's in February.

Police affidavits filed with the court in support of that warrant reveal that Squires is under investigation for fraud, theft and breach of trust.

No charges have been filed.