Ron Ellsworth alleges Anne Squires asked for cash to not 'harm' his reputation

Ron Ellsworth says Anne Squires approached his business partner in the summer of 2016 with a proposal Squires would not make public allegations that would "harm" Ellsworth's reputation as deputy mayor of St. John's, if Ellsworth agreed to pay her $38,000.

Ellsworth declined, and Squires filed a lawsuit a month later, accusing him of charging her an illegal and criminal amount of interest on a personal loan.

"I note that the request for approximately $38,000 was made during the time that I was the deputy mayor of the City of St. John's and, on this basis, I believe that Ms. Squires was attempting to leverage my position as deputy mayor against me in order to obtain a cash settlement in her favour," Ellsworth wrote in a sworn affidavit filed at Newfoundland and Labrador Supreme Court.

Squires wouldn't do a taped interview, but sent an email to CBC News when asked about those "leverage" allegations.

I am solely looking for a refund of the exorbitant criminal rate of interest dollars that he charged over and above the permissible amount.- Anne Squires

"In response to Mr. Ellsworth's position as deputy mayor or Realtor position being compromised it's immaterial to me what he does professionally or personally," Squires wrote.

"I am solely looking for a refund of the exorbitant criminal rate of interest dollars that he charged over and above the permissible amount."

She acknowledged approaching Ellsworth's business partner"in initial stages of closing"on repayment of some of the interest she contendsshe was owed in that dollar range, "but that was long before I had full access to all my former records."

Contributed to election defeat, Ellsworth says

Ellsworth believes the resulting damage to his reputation contributed to his defeat in the 2017 municipal election. He ran for councillor-at-large, and finished sixth. The top four candidates were elected.

I believe that Ms. Squires was attempting to leverage my position as deputy mayor against me in order to obtain a cash settlement in her favour.- Ron Ellsworthcourt affidavit

"I believe that the within proceeding, combined with the related media attention, had a detrimental impact on my reputation and credibility in the weeks and days leading up to the election, which I believe contributed to my unsuccessful run for councillor-at-large," Ellsworth said in his affidavit.

He noted Squires filed her statement of claim a year before city voters were scheduled to go to the polls, and amended it one week before election day.

Ellsworth added the lawsuit has had a "detrimental effect" on his ability to earn income as a Realtor, and led to him to step away from fundraising for charity groups "because I do not wish for the reputations and/or credibility of the community organizations to be tarnished by the allegations that have been made against me."

He said Squires made a second approach to his business partner in September 2018, this time seeking $40,000 in exchange for dropping her lawsuit against him.

Ellsworth steered interview requests about his affidavitto his lawyer, Darren O'Keefe.

"Mr. Ellsworth felt in my view, and my understanding felt it was important for the court to understand the detrimental impact this whole scenario has had on him personally," O'Keefe said.

Squires owned Exit Realty on the Rock

Squires owned Exit Realty on the Rock, the high-profile real estate agency that imploded after having its government licence suspended in February 2016.

After an investigation by the Royal Newfoundland Constabulary, she was charged with fraud, forgery, theft, and breach of trust.

On Tuesday, her trial on those criminal charges was scheduled to begin.

But the case was instead set over until April 24, for lawyers to conclude discussions on a plea bargain.

• Anne Squires fraud proceedings delayed while plea bargain talks wrap up

Those criminal proceedings involving Squires are totally separate from her civil action against Ellsworth, which is also due back in court later this month.

Ellsworth wants a judge to toss the case out of court, arguing that no loans went to Squires personally, and she has no standing to bring the action.

"From our perspective, Ms. Squires has brought the case against Mr. Ellsworth with virtually no evidence having been filed," O'Keefe said.

In her email to CBC News, Squires says she does have evidence, including emails and cancelled cheques.

• Court documents detail Ron Ellsworth's denials in Anne Squires' loan lawsuit
• Ron Ellsworth silent on alleged high-interest loan to Anne Squires

In previous court filings, Ellsworth acknowledged that a company owned by him made seven loans to three numbered companies owned by Squires including one that did business as Exit Realty on the Rock over an eight-month period in 2013.

He said at least four of the seven loans were repaid, along with interest, in accordance with the terms of the agreements between the companies on both sides.

According to court documents filed by Ellsworth, the total amount of all seven loans combined was more than $345,000.

Squires claims 'illegal, criminal' interest rate charged

In her lawsuit, Squires requested repayment of cash paid to "the defendant and select members of the defendant's family."

Squires alleged there was a minimum of $137,412 in what she called "interest overpayment" in court filings.

• Anne Squires sues St. John's Deputy Mayor Ron Ellsworth for $137K

"In consideration of the highest 'permissible' rate to be charged, based on financial records recently acquired, the minimum 'overcharged' to the plaintiff, after the $50,000 loan repayment has been adjusted to equate to a minimum of $137,412," Squires wrote in her statement of claim.

"Interest charged is illegal, criminal, and contrary to the Interest Act and Criminal Code of Canada."

Squires accused Ellsworth of breaching his contract with her by "taking advantage of the power imbalances and using his knowledge that the plaintiff was in financial difficulty to his advantage."

Ellsworth's request to have the lawsuit tossed is scheduled to be heard at Newfoundland and Labrador Supreme Court on April 18.

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