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

Exit Realty on the Rock owner Anne Squires is suing St. John's Deputy Mayor Ron Ellsworth, claiming he charged her an illegal and criminal amount of interest on a personal loan.

• Ron Ellsworth silent on alleged high-interest loan to Anne Squires

In a statement of claim filed Aug. 29at Supreme Court, Squires says she borrowed $50,000 from Ellsworth but paid back over $190,000 to the deputy mayor. She's suing for $137,412 of "interest overpayment," claiming the amount charged was "illegal, criminal and contrary to the Interest Act and Criminal Code of Canada."

In April, a document came to light indicating Ellsworth loaned Squires $50,000 in January 2013, to be paid back with a $10,000 cost-of-borrowing feetwo months later. In her statement of claim, Squires claims Ellsworth charged daily "late fees" of $500 a day in "very aggressive" emails and texts.

The claim says emails and texts showthe deputy mayor was "unprepared to accept any payment on principle [sic] unless the amount was available in full," followed by a quote,"It's not how us guys work. It's 10% per month and $500 per day late fee in Cash." The claim does not state the origin of the quote.

Ellsworth to file statement of defence

The statement of claim, which appears to have been filed by Squires herself,also says money was paid to "select memberof defendant's family as requested by defendant as required from time to time to change payee on cheque and frequent times by cash." Squires also claims that "out of $190,000 plus paid to defendant, 'zero' was applied to principle [sic]."

Ellsworthdeclined to answer questions on the lawsuit Tuesday.

"While certainly I understand both the media and the community interest in this issue, as it's a civil, legal issue at this point, I'm not in a position to comment on it," he told CBC News. "Once all issues around the Exit Realty issue conclude, I have no problems speaking to it in detail at that point."

Ellsworth did say he would be filing a statement of defence, and that he personally hasn't seen the statement of claim yet.

"Once we see it, we'll prepare a defence and go through the process," he said.

I will continue to serve the city to the best of my ability, as I have the last three years.- Ron Ellsworth

He did say he was not surprised by Squires' lawsuit.

"We had an indication a few weeks ago that that was one of the approaches she was going to take, yes," he said.

Ellsworth declined to confirm or deny any details of Squires' claim, and said the legal action will not affect his work as deputy mayor.

"I will continue to serve the city to the best of my ability, as I have the last three years," he said, declining to answer any further questions.

Exit Realty on the Rock was forced into receivership by the Bank of Montreal in February, after the real estate firm'slicence was suspended by the province.

Squires is under criminal investigation for theft, fraud and breach of trust.