$150 Million Lawsuit: Freezing Robert Giroux's Assets

The Supreme Court freezes Robert Giroux's assets, worth at least $37 million, for six months. The judge described some elements presented in evidence in the first part of the $150 million trial, which pitted the businessman against millionaires he persuaded to invest in Groupe Huot ventures, as “troubling”.

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This decision comes based on a request submitted by the applicants in the file.

Judge Jocelyn Geoffroy issued her ruling “on the bench” immediately after hearing the positions of both parties on Tuesday.

This ruling is due in particular to the long delays that led to the trial ending on November 15, 10 months after it was initially scheduled. A period that would obviously give Jiro time to liquidate some assets, which would complicate the recovery of the plaintiffs' debts, which could reach $150 million.

In fact, the judge mentions in his decision “the urgent need to ensure that the defendants’ assets remain intact” and “the real risk that some assets will disappear.”

The first such order was actually issued in June 2023, before it was canceled a few weeks later. In September, Robert Giroux pledged not to sell or remortgage his primary residence, chalet or condo in Florida.

Less assets than expected?

During the first three weeks of the trial, forensic accountant François Fillion's testimony particularly revealed that Robert Giraud's assets would be less important than initially expected.

According to the findings of the KPMG expert, commissioned by the applicants in the file, the businessman's assets must be readjusted. Giroux reported total assets of $209 million in July 2023, but the real amount will be more than $37 million, according to Mr. Filion.

This significant decline may be due to “double counting of investments and advances between companies, as well [qu’aux] “Bad debts associated with Groupe Huot,” says Judge Geoffroy, who also raises Robert Giroux's responses to an upcoming $10 million tax refund.

“The latter indicated that he could do whatever he wanted with his money.”

“good luck”

To justify his decision, Judge Geoffroy also cites the testimony of one of the plaintiffs, Andre Belanger, who recounted a discussion he allegedly had with Giroux.

According to the witness, the businessman who managed the private investment funds Q-12 and FIISH, which were used to finance the activities of the Huot Group, knew “fully” that he was at risk of civil prosecution.

“Giroux wished him good luck because his companies would be empty shells and he would be protected by the corporate veil,” the judge states in his ruling.

Robert Giroux's “numerous” disciplinary records before the Land Surveyors Guild were also cited in the decision.

The trial of Giroux, who is accused of fraud by millionaires, will take a break for a few weeks and will resume in the fall. We must hear from the main party again, this time on defense. A second forensic accounting expert, commissioned by the Jiro clan, will also provide his analysis of the case.

What would be off-limits to Robert Giroux and his companies

• Selling, mortgaging or transferring assets in its possession
• Do not order anyone to do, directly or indirectly, what is forbidden to him
• Provide supporting documentation within 10 days showing the use of the $10.5 million tax refund that appears in its 2022 financial statements.

Duration of the protection order: 6 months