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by Mike Caswell

Lotus Ventures Inc., responding to a lawsuit over an unpaid $1-million loan, denies that it did anything to mislead its former chairman, Albert Duwyn, into lending the company money. Lotus says that Mr. Duwyn was well aware of the company's financial condition and its debts, and had access to its financial statements. Mr. Duwyn also relied on advice from his lawyer and accountant, Lotus contends.

The statements from Lotus come in response to a lawsuit that Mr. Duwyn filed against the company on Oct. 19, 2023, in the Supreme Court of British Columbia. He complained that Lotus borrowed $1-million in January, 2023, on the premise that it needed the money to pay a tax debt and that its cash flow was improving. Lotus represented itself as being in good financial condition, but that was far from the case, Mr. Duwyn claimed. According to the suit, Mr. Duwyn only learned after providing the loan that Lotus had suffered a loss in the millions of dollars in the fourth quarter of 2022. On top of that, the company used the loan proceeds to pay amounts owing to its president, Dale McClanaghan, Mr. Duwyn claimed.

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