A Williams Lake city councillor is facing a lawsuit that accuses him and his wife of forging documents and misappropriating funds 鈥� accusations he fundamentally denies.
Scott Nelson, his wife Twila Smigelsky (also known as Twila Nelson) and the businesses the couple own or operate are being listed as the respondents in court documents filed on June 25 by lawyers on behalf of Dr. Mark Lambiotte Inc., Dr. J.D. Neufeld Inc., Marc Lambiotte, David Lambiotte and Lara Lambiotte.
Along with Nelson and Smigelsky, the civil suit also names the following companies: Stratton Ventures Ltd., Lambiotte Ventures Ltd., Scott and Twila Rentals Ltd., Best Buy Propane Ltd., and numbered companies registered as 1155033 B.C. Ltd. and 673284 BC Ltd.
None of the accusations have been proven in court.
"It is unfortunate we're in this place," said Patrick Sullivan, the lawyer representing Nelson. Sullivan said the matter is simply a dispute between business partners. He said the situation is a result of a corporate partnership that "it's time for it to be wrapped up."
A petition to B.C. Supreme Court is a type of civil court proceeding dealing with certain types of civil matters, such as judicial reviews, wills and estates, bankruptcy, and foreclosure applications. The matter would be heard by a judge alone if an agreement is not reached outside of court.
Unlike a previous case involving Nelson and a business partner splitting rental properties they co-owned, this recent case alleges financial mismanagement by the councillor and his wife.
"Nelson and Smigelsky have committed egregious breaches of their fiduciary duties, forged documents and misappropriated Stratton's assets," claims the petition to the court.
"The respondents have absconded with millions of dollars from Stratton and 673284. Those funds need to be identified and, if possible, secured."
It's alleged that unauthorised transactions took place with businesses or entities related to or controlled by Nelson and Smigelsky, and those deals were concealed from Stratton's shareholders and accountants.
The petitioners believe cash was misappropriated from Stratton and 673284 and the respondents were paying themselves or their companies the operating profits and loan or sale proceeds while not paying their other shareholders.
Further to this, it is alleged that Stratton and 673284 failed to pay funds due on mortgages and to the Canada Revenue Agency, while also allegedly entering into fraudulent loan agreements and forging the signatures of the other directors.
The petition also states Nelson and Smigelsky failed to account for as much as $15 million in proceeds from refinancings and property sales while also reportedly denying the petitioners access to Stratton and 673284's financial records, which the petitioners also believe did not accurately record these transactions.
The civil suit claims Nelson and Smigelsky put their own interests ahead of those of Stratton and 673284 and through their alleged misconduct and breaches of duties, Stratton and 673284 have suffered "substantial loss and damages for which Nelson and Smigelsky must account."
However, Nelson's lawyer said the allegations are incorrect.
"It's quite clear to us from our review, they've made allegations that are just fundamentally wrong. They're just not factually accurate," said Sullivan, noting that while the business partnership may have run its course, it is unfortunate the petitioners chose to pursue litigation.
"It's all speculation," he said.
The group of petitioners requested the court restrain Nelson and Smigelsky and their representatives from transferring or shifting assets or money from any of the three corporations which are the focus of the court action: Stratton Ventures Ltd. (Stratton), Lambiotte Ventures Ltd. (LVL), and 673284, without the prior written permission of the petitioners, while the case makes its way through the courts.
This was granted by the court in early August after a consent order, signed by the lawyer representing the petitioners, Nelson's lawyer and Smigelsky's lawyer, was also signed by the court. This means Nelson and Smigelsky agreed to the requests for the financial records and to not move money or assets out of the companies.
The consent order states Smigelsky and Nelson, and their employees or officers are restrained from directly or indirectly disposing of, transferring, or encumbering the assets of Stratton, 673284 or Lambiotte Ventures. The only exception is in order to continue the normal course of business.
They have agreed to provide online access to all bank accounts of Stratton and 673284 to Doug Neufeld and Marc Lambiotte. They will also provide requested bank statements, financial statements, trial balances and general ledgers for Stratton and 673284 for specific periods of time requested by the petitioners. They are also agreeing to provide corporate income tax returns for Stratton and 673284 for 2022 and 2023.
By Aug. 15, 2025, Nelson and Smigelsky would have been expected to produce a list of documents with banking records recording the payment of any funds from Stratton and 673284 to a number of companies associated with them.
Nelson's lawyer said they have been providing records to the petitioners as requested and are happy to do so. Sullivan said they expect this process to be ongoing for some time.
In the initial petition, the investors are asking for Nelson and Smigelsky to buy the petitioners' shares of the companies at fair value, or failing that, to dissolve the companies.
The petitioners are also asking for Nelson and Smigelsky to compensate them for "all funds Stratton and 673284 diverted to Scott Nelson, Twila Smigelsky, or the Related Entities." The documents name 17 different businesses they refer to as Related Entities which they believe may have been given or lent funds from Stratton or 673284, all of which the petitioners believe the couple has a control or interest in.
Neufeld and the Lambiottes claim they will suffer "irreparable harm" if the court does not protect Stratton by removing Nelson and Smigelsky as directors. They state the company is in a "financial crisis" created by their actions.
Nelson and Smigelsky were responsible for the day-to-day operations of both Stratton and 673284, according to the claim of the petitioners.
While the petition states it had demanded Smigelsky and Nelson agree to filing by Stratton of a notice of civil claim against them and their businesses in order to recover and account for the missing funds, in the initial petition, they say the couple has been unwilling to do so.
The petition states they are therefore asking the court for leave to dissolve Stratton and LVL.
It is alleged by the petitioners that Nelson and Smigelsky diverted funds from the corporations they were shareholders in, along with the couple, to some of the couple's other companies or businesses, without permission.
Nelson lists 24 businesses and numbered corporations within the city of Williams Lake and Cariboo Regional District in his 2025 disclosure statement as a city councillor, as sources of income, as well as his city councillor's salary.
He lists 35 corporations and businesses as assets on his disclosure of assets within the Cariboo Regional District, which includes the six companies named as respondents in the petition to the court.
This new case against the city councillor comes close on the heels of a previous one involving a split between Nelson and business partner Jasvinder Kandola. A consent order for the case involving a transfer of business assets to divide rental properties was filed with the courts on June 9, 2025, .
The deposit of $2 million by Nelson to cover potential capital gains on properties being distributed between the partners' other companies had reportedly taken place; however, the arbitration process is still ongoing.
But less than three weeks after the last documents filed in the Kandola case, this new case was filed naming Nelson, along with Smigelsky and a number of businesses they operate.
As of Aug. 26, a response from Nelson and Smigelsky had not been filed in court records.