Comments on: Big Changes For Canadian Real Estate After Prominent Developers Charged With Fraud

By: John Hartley

John Hartley — Sun, 26 Jun 2022 10:13:01 +0000

The failure of regulators and police should be right in everyone’s face. The time lines are way beyond preposterous. Folks should be fired.

By: RW

RW — Fri, 24 Jun 2022 16:54:18 +0000

In reply to Glen.

If accuracy were important, clowns like you would actually look things up instead of claiming it’s inaccurate.

“How a real estate developer’s efforts to silence a critic failed”

” Fortress bills itself as a real estate developer, but in most cases it’s more of a consultant…”

https://www.macleans.ca/economy/business/how-a-real-estate-developers-efforts-to-silence-a-critic-failed/

The legal case will probably focus on whether or not they were at arms length from the companies they had ownership and consulted for.

By: Mary

Mary — Fri, 24 Jun 2022 16:14:59 +0000

The victims of the fraud suffered for the loss since they lost the principals and can’t use the loss to deduct the income tax. The law is needed to be regulated to prevent the fraudster from taking advantage of people in public who need their savings for retirement. And, government should be aware it would be a huge burden if victims have to live on the social support programs eventually.

By: Glen

Glen — Fri, 24 Jun 2022 15:51:50 +0000

From the article it seems these people and their company are not real estate developers, they are financiers, but a correct headline wouldn’t be as sexy, and create the same hype.
Too bad accuracy is not relevant.

By: KG

KG — Thu, 23 Jun 2022 20:08:14 +0000

In reply to Jason. It wasn't easy to get the RCMP to investigate. They investors had to organize and pester authorities to look into it. Sure you can do the same, and it's probably worth it if you were genuinely feel deceived by the marketing.

By: Jason

Jason — Thu, 23 Jun 2022 13:06:38 +0000

There is a group of us in the Calgary area, all victims of a fraudulent developer. Who can we go to for an investigation as he continues to do the same thing all while living the high life on other peoples money. Most of us have lost every dime. Will the RCMP investigate?

By: backwardsevolution

backwardsevolution — Wed, 22 Jun 2022 22:49:07 +0000

“The syndicated mortgage investments were promoted to Canadians as safe investments returning eight per cent interest…”

Huge red flag right there. In a virtually 0% environment, if somebody came along and started offering me 8%, I’d be asking: where’s the risk hidden? Because it’s buried somewhere.

“In April 2018, the RCMP searched Fortress offices and investors learned that 50 per cent of their principal was deducted for commissions, fees and interest. ”

Sounds like a lot of charities, sucking the money into CEO and upper management salaries, fine furniture, expensive artwork and high rent, with hardly any going to the charity.

This time isn’t different. There’s a lot of carnage out there. Had the government not artificially suppressed interest rates (which has created a disaster), these people would probably have been safely invested in 5 or 6% CD’s and been quite happy. I feel for them.

By: Credit Guy

Credit Guy — Wed, 22 Jun 2022 20:39:31 +0000

In reply to Marc.

Yes on the RRSP eligible point. I don’t know why they felt that but it sounds like a difference in recognized valuation which is going to court to determine.

https://www.theglobeandmail.com/business/article-inside-the-fall-of-fortress/

By: Marc

Marc — Wed, 22 Jun 2022 20:37:12 +0000

In reply to Trader Jim. Sophisticated investment tools like this should have to go through investment professionals that have to a have a background longer than a few weeks of classes. It's my understanding some of the brokers sold these as RRSP-eligible investments when they clearly weren't?

By: Ethan Wu

Ethan Wu — Wed, 22 Jun 2022 20:35:19 +0000

Surprisingly tame take considering this is what people have been saying in other news sources.

“Ray is among an estimated 14,000 investors across the country who lost about $334 million in syndicated mortgages tied to Fortress Real Developments condominium projects between 2009 and 2018 in what they call the largest mortgage fraud in Canadian history.”

https://www.barrietoday.com/local-news/fortress-investors-who-lost-millions-disappointed-with-federal-governments-response-3876388