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

The deputy mayor of St. John's is declining to answer questions about media reports alleging he fronted the owner of a troubled real estate firm tens of thousands of dollars, with a high rate of interest on the loan.

• Anne Squires under RNC investigation for theft, fraud and breach of trust
• Anne Squires files defence to lawsuit over personal loans

NTV reported Tuesday that Ron Ellsworthloaned Anne Squires of Exit Realty on the Rock $50,000 in January 2013.

The media outlet said it had obtained a document stating the following:

"The sum is to be paid in full on March 22, 2013, or payout increases by an additional $5,000 monthly. The cost of borrowing is $10,000. And is to be paid personally to Ron Ellsworth."

CBC News has not independentlyverified the authenticity of this document.

Ellsworthrepeatedly declined to answer questions from NTV, and has also declined interview requests from CBC News.

The alleged loan pre-dates Ellsworth's return to municipal politics by about eight months.

There are laws under the Criminal Code of Canada that prohibit interest rates exceeding 60 per cent per year, and the terms under which Squires agreed to the loan appear to be well in excess of this maximum.

An analysis of the figures by CBC shows that Squires would have to pay $60,000 in interest over a one-year period, which equates to an interest rate of 120 per cent.

That's twice the rate permitted under the Criminal Code.

Exit Realty on the Rock had its licence suspended by the province on Feb. 4.

The St. John's real estate firm has gone into receivership and Squires is under police investigationfor theft, fraud and breach of trust. She is not facing any charges.

Police executed search warrants at Exit Realty on the Rock's head office in February.