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Mortgage Broker News | 05 Nov 2018, 12:24 AM Agree 0
A couple of mortgage brokers refused to answer MortgageBrokerNews.ca’s questions
  • Rachelle Berube | 05 Nov 2018, 10:35 AM Agree 0
    I did some research into Fortress and found that some of their projects had 306% loan to value mortgages taken out on their properties the date of purchase. I also met with a BDMC salesman called Carl Steritt. I was told I could get an appraisal, and everything was secured by a mortgage. Fortress used Letters of Opinion issued by a appraiser stating what the property was worth after it was built up not a current appraisal, but this was meant to confuse investors who would think it was a legit actual appraisal as it was issued by an appraiser on their letterhead. Once you were in their sales channel they would arrange for you to meet their professionals to do your due diligence. Mortgage brokers were paid lucrative 10% commissions to sell Fortress products. Bottom line is mortgage brokers had easy access to check the sales price and existing mortgages
    • Rick Cauvier | 04 Dec 2018, 07:45 AM Agree 0
      Rachelle. I also got into this scam to the tune of $248000.00. I want to get as many victims as possible to speak out but i don't know how to do it.
  • Ron Butler | 05 Nov 2018, 11:08 AM Agree 1
    You don't know whether to laugh or cry when you read some of this. A duly registered mortgage agent in the province of Ontario refers a compliant about a mortgage she clearly arranged or recommended to Fortress? Like she is not involved?

    So no due diligence, no follow-up, no level of responsibility whatsoever, just: Call Fortress. This is what is wrong with the Regulator in Ontario. Every single one of the mortgage agents, brokers, brokerages and Principal Brokers of those organizations who sold Fortress products or referred clients to Fortress and received payment for same should ALL be under investigation and really should be suspended from operations during the investigation.
  • Michele Hall | 05 Nov 2018, 11:26 AM Agree 0
    For the investor that was in the mortgage industry , you could not have been experienced in mortgages. I read the prospectus supplied to me by my private investors, I could see the risks, and that their investment was going into soft costs of projects . I advised them that at their stage in life this was way too risky . As for the police officers that is terrible to take away their retirement as well . Investors should always always always have their lawyer review any investment. A good broker will send the package to the lawyer.
    • Ron Butler | 05 Nov 2018, 12:41 PM Agree 0
      Michelle, Fortress did an end run around your perfectly logical suggestion to show the deal to a lawyer. Fortress told every investor that they would see an independent lawyer to sign the docs but what they didn't tell the investor was that because Fortress PAID that independent lawyer the ILR was false so the clients ended up with zero case against the so call independent lawyer and the Law Society. Pure fraud from start to finish.
  • Devastated Customer | 05 Nov 2018, 03:02 PM Agree 0
    We too have invested over $215,000 with Fortress since June 2012. The project should have been completed April 2016. I have been checking with Fortress (now bankrupt)and Faan Mortgage in Toronto. Still nothing! No one has answers. WE were told we would be issued a T5 slip to show we received RRIF money from the trust company (even though no money will be given to us)and we have to claim we received the money when we file our taxes. What nonsense -that`s fraud!!! We do not know what will happen as we really need that money since we are retired. Someone help us, please!!
    • Saddest person in the world | 06 Nov 2018, 03:23 PM Agree 0
      I'm on the same boat but deeper hole!!! I'm reaching out to so many people, can't hear back from anyone! It's like no one cares!!! I feel hopeless!!! Share your email, I will contact you.
  • answer guy | 06 Nov 2018, 01:11 AM Agree 0
    all your eggs in one basket?
    sounds like gambling to me
    • Ron Butler | 07 Nov 2018, 11:19 AM Agree 0
      Not completely fair, yes, people need to be ultra careful once they go outside mainstream investing but this was sold as a debt instrument like a bond and the promoters always mentioned the sales people held government licenses and independent lawyers would also provide individualized, learned opinions on the mortgage investments and the lawyers did in fact do that. This was way beyond and Rah-Rah Pyramid sales madness this was well organised fraud.
  • Saddest Person In the World | 06 Nov 2018, 03:20 PM Agree 0
    I was fooled into this scam, me and my partner invested $500k into this scam because we were assured this was a safe investment! We investors need to unite and see if we have any rights against these frauds!! Let's build a group of defaulted investors!!
    • same boat | 01 Dec 2018, 02:01 PM Agree 0
      start facebook page again for all!
    • Eric | 03 Dec 2018, 05:51 PM Agree 0
      Join us... "Investors" of Fortress Developments and BDMC at FB. We are rallying all victims against the useless regulatory body of Ontario known as FSCO and also against FB.
    • Down but not Out | 03 Dec 2018, 07:51 PM Agree 0
      Please check out Facebook page “Investors” of Fortress Developments and BDMC. We are all investors that have lost money and need to reach out to everyone that has lost money so we can move forward in a group to make more noise.
  • Matt | 07 Nov 2018, 07:30 AM Agree 0
    The worst part of this is that the receiver (faan) will have priorities for their fees before any investors. Expect to lose 30 to 50% in any recovered dollars to them prior to seeing any money.


    • Ron Butler | 07 Nov 2018, 11:13 AM Agree 0
      Oh no, this will be a total loss for investors. Zero cents on the dollar.
  • Carole | 08 Nov 2018, 09:18 AM Agree 0
    We first heard of Fortress when a respected Ottawa Real Estate group endorsed their projects and invited Jawad Rathmore as a speaker to one of their Investment Seminars. Given that this Real Estate group is well known and respected, plus personal assurances from Mr. Rathmore that the Capital Pointe project in Regina was safe and secure due to their in-depth planning and research, in addition to their successful track record, we felt that investing in a syndicated mortgage met our low risk criteria for investments. That was back in 2011 and as of today the project is no further along than a hole in the ground. After years of mis-information and deception from the brokers we fear that once everything is said and done we will lose our $100k investment. In addition to the financial loss there's the ongoing anxiety associated with continually trying to get realistic status information on our investment.
  • Michele Hall | 12 Nov 2018, 01:28 PM Agree 0
    Ron, why would you not enlist your lawyer to review everything before you invest . If you work with a lawyer supplied by Fortress that should be your first red flag. I feel awful for the investors who lost everything. However did anyone seek legal advise outside of the Fortress group ? Not the lawyer supplied by them ?
    • El Bastardo | 13 Nov 2018, 09:21 AM Agree 0
      Part of the tactic was to convey to you that there was independent legal advice. Why would retail investors assume they are required to seek out their own legal counsel on investment products? You don't do this with conventional products (mutual funds, equities, etc). The way it was marketed to retail investors primarily was to show you that there was a pseudo due diligence and that they 'looked out for your best interests'. I know because I interviewed several brokers that marketed this stuff. It was all smoke and mirrors with meaningless and distorted comparisons to other investment products. The brokers were trained to provide comparisons to equity markets (e.g, TSX primarily...that is a few key sectors with more volatility than the S&P for example), to these 'fixed rate safe returns of 8% with security'...and none understood that there was no volatility with these products because guess what? There was no secondary market. No pricing = no volatility. The argument made by these brokers on several occasions was that: why pay for costly legal expenses when the borrower covers the costs? Of course you will not pay for legal expenses. You don't for others, so why this one? Especially since it was marketed as a conventional retail investment product....through registered accounts on top of it.
    • Ron Butler | 22 Nov 2018, 12:02 PM Agree 1
      I really do get what you are saying Michelle but we have to be careful not to be victim blaming, these products were a fraud from day one. They were carefully crafted and designed to fool people, let's face it if you were sent to see a real lawyer who was portrayed as YOUR INDEPENDENT ADVISER, if it was your first time with private mortgages you would likely think you were good.
  • Feel so violated | 14 Nov 2018, 08:28 PM Agree 0
    If you have lost money please join Facebook group "Investors" of Fortress development
  • kai | 20 Nov 2018, 11:20 AM Agree 0
    I am an investor also in same boat, we invest over 200K in fortress 3 projects,one of them is power sell end of Nov 20 2018, what can we do now?
  • kai | 20 Nov 2018, 11:25 AM Agree 0
    I can't find the group of "Investors" of Fortress development in facebook, we should have a group for us to discuss and maintain our rights
  • | 29 Nov 2018, 07:11 PM Agree 0
    Finally people are reaching out. After months of calling anyone and everyone and getting the run around it's nice to know we are not the only ones. We could have written any one of these posts as our story is identical. What we want to know is when are these fraudsters going to jail?
  • Shattered | 01 Dec 2018, 12:00 PM Agree 0
    It is time to start a class action suit before its too late. Where is a good lawyer adept at mortgage fraud? We all need to converge and meet..how? Lamenting takes us nowhere, we should act now? whoever started "Investors" of Fortress development on facebook, please check, make sure we can all hook up there as someone said he or she could not find it on facebook. My case is they knew my husband was a senior, in retirement and sick, it was his pension funds, and to top it, we were also encouraged to take a loan to add to the investment apart from his pension, total almost 300,000 inclusive of the loan that i am paying interest on as a widow now and stand to lose all he worked hard for me and his family. He is turning in his grave. I suffer anxiety and stress over this almost on a daily basis and my family's future financially stability has been compromised. They didn't care that they'd put average people who worked hard all their life to save a little hoping for a better future, into the poor house and devastate families. Someone give me an email I can connect with for starting a class action suit.Post it here, I'll email you.
    • Down but not Out | 03 Dec 2018, 07:57 PM Agree 0
      ismyle@rogers.com. I’ve also lost money. Please contact me.
  • Shattered | 01 Dec 2018, 01:58 PM Agree 0
    It is time to start a class action suit before its too late. Where is a good lawyer adept at mortgage fraud? We all need to converge and meet..how? Lamenting takes us nowhere, we should act now? whoever started "Investors" of Fortress development on facebook, please check, make sure we can all hook up there as someone said he or she could not find it on facebook. My case is they knew my husband was a senior, in retirement and sick, it was his pension funds, and to top it, we were also encouraged to take a loan to add to the investment apart from his pension, total almost 300,000 inclusive of the loan that i am paying interest on as a widow now and stand to lose all he worked hard for me and his family. He is turning in his grave. I suffer anxiety and stress over this almost on a daily basis and my family's future financially stability has been compromised. They didn't care that they'd put average people who worked hard all their life to save a little hoping for a better future, into the poor house and devastate families. Someone give me an email I can connect with for starting a class action suit.Post it here, I'll email you.
    • Zyre | 03 Dec 2018, 06:06 PM Agree 0
      Hi, join us in our FB group... https://www.facebook.com/groups/257784194883101/?jazoest=2651001197452122801115595881201081201025374995212210466578079104741071001228180499074

      We are already working to file a class action suit.
  • Saddest person in the world | 03 Dec 2018, 11:53 AM Agree 0
    He is the link for the group guys please refer which project you are associated.
    https://www.facebook.com/groups/257784194883101/?jazoest=265100119745212280111559588120108120102537499521221046657807910474107100122818049907453116549911865120695097815865100120748773451197650120113121971147510050101531171006852651139967835578115120797311476103528955101101879981
  • David Franklin | 03 Dec 2018, 02:40 PM Agree 1
    Do you think that the Doug Ford government should compensate Fortress investors whose retirement income has been affected for the Wynne government's failure to protect the public? If you do, email your member of Parliament setting out your concerns and if there is a large outcry, Ford may act.
    • investor | 03 Dec 2018, 05:58 PM Agree 0
      I think we should go after FSCO for issuing mortgage broker's license to the two partners running Fortress. They were found guilty of misconduct when they had Mutual Funds licenses and their licenses were canceled. Why would you givd them a license to do any other kind of financial business? Not only that but after the scam became apparent and FSCO's front line officers kept pushing for a full scale investigation, why did their superiors not start an investigation with a sense of urgency?
      This is criminal negligence on FSCO's part and they should compensate all investers through government of Ontario or forcefully recover investor's funds from these criminsls instead of imposing a slap on thr wrist fine that does nothing to protect investors.
    • Rick Cauvier | 04 Dec 2018, 08:03 AM Agree 1
      I think the FSCO should be sued for not doing their job to protect Canadians against this fraud. That's their job but they turned their heads despite all of the warnings.
  • Out Money | 03 Dec 2018, 05:48 PM Agree 0
    It is essential to email Bill Morneau and lay out what has happened to you. Class action suits are a good move too however the government needs to be held accountable for allowing this to occur and being asleep at the switch even after FSCO’s own investigators brought forth evidence of fraud a long time ago. That’s right. FSCO completely ignored the evidence and allowed this to flourish into the largest Ponzi scheme in Canadian history. Let’s group together and keep the list of affected investors growing. ALL involved mortgage brokers need to be held to account also for presenting these “investments” in a very negligent manner.
  • Zyre | 03 Dec 2018, 06:03 PM Agree 0
    Dear all, we are all on the same boat. We created a group FB, here is the link.... https://www.facebook.com/groups/257784194883101/

    Our objective is to rally all the victims of this insidious company named Fortress and also to make FSCO liable for their incompetence, because they were too late to regulate this syndicated mortgage which was already reported to hem way back 2013, and yet they did no act immediately and waited until 2017 to act.

    My name is Eric, one of the moderator of this FB group named ,,
    "Investors" of Fortress Developments and BDMC.
  • Charles | 03 Dec 2018, 07:35 PM Agree 0
    Same boat as everyone else here. Has someone invested in the Solotex (Victoria Park Place) project?
    Have you heard about a project status or exit options? Maturity date was Nov 2017, with a one-year extension, Nov 2018. Construction has not started yet.
    Lost $19K in the Harmony Village project this year...
  • Deborah | 04 Dec 2018, 10:14 AM Agree 0
    I have read all the comments from the other investors with Fortress Real Developments. Like many other investors, when my husband and I invested RRSP/RRIF money into different Fortress projects back in 2013, it seemed like sound investment. We were receiving interest payment monthly or quarterly depending on the investment. We went to several different meeting to learn more the investment before we actually invested money. There were no signs of trouble, Fortress sent out either monthly or quarterly newsletter announcing which projects they had existed from where the investors had been paid and how much deferred fees they earned on top of the 8% annual interest. They also gave information about new projects with top notch builders such as Brad Lamb, Mady Homes etc. They bailed out a couple of projects that I know of, one of the Munir on Duffins Creek in Pickering, ON and the Burlington project or at least that is how it appeared. My husband invested in the Burlington project because it looked like a really good project on a desirable piece of land. A year or two into the term, we found out from the Mortgage Broker with FMP, Graham McWaters, who sold it to him, that Mady Homes had to sell the project to another developer who refused to take over the mortgages. He was told that Mady was very ill but it actual fact Mady Homes went bankrupt. This is a builder with 30 plus years of reputation building good quality homes. I don't know what happened there but that should have been the first clue that something was up. Graham told my husband that if he wanted his money back he would receive 60% of the principal value or he could invest in two different projects, Danforth and Winnipeg. He chose to transfer his principal to Danforth and Winnipeg not knowing that there was anything going on at Fortress Head Office but we have since learned that some other investors were actually paid out in full. Why did Graham McWaters lie to him? What is interesting is that if you google his name, his LinkedIn profile says "As an expert in mortgages, identity theft protection, and risk management, I am currently offering to consult, coach and train financial professionals". Why was he going to Mortgage Brokerages and talking to the principal broker about the syndicated mortgage product which in turn was endorsed by some principal Mortgage Brokers? If he is an expert in risk management, why didn't he talk about the risk? If I recall, we were told that the investment was somewhat safe, after all it was secured by a mortgage. Less fluctuations than the stock market or mutual funds.
    My husband was being charged two monthly fees instead of one because he was in two projects know instead of the initial one project. When he complained to Graham, he was told "you should consider yourself lucky that you didn't lose all your money". Graham and FMP both earned $1050 in commission for transferring my husband's investment from Burlington to Danforth and Winnipeg. They earned money on Burlington project too.
    I really feel that FSCO who authorized these investments to be sold by Mortgage Brokers/Agent should be responsible for monitoring what was going on at Fortress Real Developments and by Fortresses Sales Force, FMP and BDMC. I have heard that they were warned about what was going on but refused to do anything about it until it was too late when the RCMP showed up at Fortress's head office. Everyone wants to blame their Mortgage Broker/Agent but when a company is endorsed by your principal broker, you attend several information session to learn more about the investment and everything seems to be good, many people including mortgage brokers and agent have lost their hard earned money. I think what is important is that all investors who have investments with any of the Fortress Real Development get together and come up with a sound plan of what we can do as a group. I think most people who know David Franklin have already sent letters to Minister Bill Morneau, David Piccini, David Wai and your local MP. What else can be done? Does anyone in this group have a central meeting spot where we could meet? These are just some of my thoughts. I'm not getting many real answers from FAAN but they do return your call in a couple of days usually and assure me that they are looking into matters, whatever that means. Maybe they could be included in the meeting along with David Franklin and anyone else who might have a solution. Fortress was founded in 2002, something went wrong at Fortress and as investors we need to know what happened and how we can get our money back, as least part of it. Perhaps the RCMP can tell us since they are doing an investigation. We need answers, as this has affected far too many people.
  • | 04 Dec 2018, 11:51 AM Agree 0
    Some other things to think about.
    Why did the OSC, in its settlement agreement in December 2011, allow Jawad Rathore, Vince Petrozza and others to be involved in the mortgage business? Why didn’t Charles Sousa the Liberal Minister of Finance fire the executives of FSCO after the Auditor General of Ontario reported in August 2014 that FSCO was incompetent? Why didn’t he fire them after he received the report of the Panel of Three, he created in March 2016, that confirmed that FSCO was incompetent? Why did the Law Society of Ontario wait until October 2017 to issue its notice to the legal profession concerning syndicated mortgages, especially since free independent legal advice was being offered to investors? Why didn’t Anatol Monid, the Executive Director of Licensing and Market Conduct at the Financial Services Commission of Ontario, take action against Fortress when he stated in December 2016, that the 35% development fee agreement should be disclosed to investors when he knew it wasn’t? Why did Anatol Monid allow Olympia Trust Company to conduct business in Ontario when it wasn’t licensed to do so under the Loan and Trust Corporations Act?
    Do you think that these regulators, that are to protect the public interest, failed to do so?
    • Deborah | 07 Dec 2018, 09:15 PM Agree 0
      Excellent points and questions that all Fortress investors need to be answered.
    • Zyre | 11 Dec 2018, 09:13 PM Agree 0
      The government owes this to the public, must rectify their mistakes and penalize the culprits behind this white collar crimes.


  • | 04 Dec 2018, 12:04 PM Agree 0
    Were you at a Fortress presentation where Brad Lamb failed to tell you the following concerning the risks of investing in syndicated mortgages that loaned these monies to condo developers?
    “The reality is that most projects don’t work out,” Toronto-based high-rise developer Brad Lamb says. “There are all sorts of places where you can get creamed in this business. “Mr. Lamb had to cancel a condo project in Edmonton last year and is fighting for planning approvals for several projects in Ontario. “If you do 10 projects, you’re going to get one absolute home run that’s absurdly good, and that pays for all the other nine. Five or six of them are well below expectations, and maybe three are below expectations … out of 10, you’re going to have two disasters.”
    https://www.theglobeandmail.com/real-estate/article-toronto-condo-projects-teeter-on-collapse-amid-rising-costs/
    • Ron Butler | 04 Dec 2018, 12:49 PM Agree 0
      Oh. My. God. You will have two disasters? Why didn't Fortress tell every they dealt with this information?
  • Ronnie is a liar that drives a BMW | 04 Dec 2018, 01:03 PM Agree 0
    A fellow 'investor' here. Involved in the Victoria Medical (Amadon-Westwater), Colliers 2 and Peter Richmond projects. $150k total invested. Received some funding back from Victoria Medical, all but 30% so far (if ever). No interest earned. Colliers 2 is dead silent. Peter Richmond is set to mature Jan 2019 but doubtful I will see anything then if ever.
  • Zyre | 04 Dec 2018, 01:52 PM Agree 0
    This grand scheme of deceiving the public was designed from the very top by Fortress and they even planned how they can get away with it.

    Fortress:
    1. To gather more money, he created more minions aside from BDMC, and the results of the spin-off were the FDS,FFM and FPM brokerages
    2. These minions were designed in way to set his company Fortress separate from him. This is a fail-safe strategy, that when the investors started to notice that they were duped, then plan A is to declare bankrupt and hide behind the corporate veil. Meaning, their personal assets are protected and Fortress has nothing to do with them, as if they are separate from these mortgage brokers. But if you will investigate, the owners and CEO of these brokerages and BDMC are related to Fortress.
    3. He collaborated with a trust fund company named Olympia Trust Company located in Alberta, but Fortress was able to manipulate to have this company do transactions here in Ontario. This is a big question?
    4. Provided his minions with projects that are over-priced so that they can get more money from possible investor by telling that the LTV (Loan to Value) is positive.

    BDMC/FDS/FFM/FPM:
    1. Designed a presentations that is focused only on the positive picture, they emphasized that the LTV is positive and even tell possible investors that there is no risk, because the investor will have a lien on the property which is not true.
    2. They did not perform the profiling of possible investors to determine if you are a "high risk, balance or conservative" investors, which is non-compliant which is a ground for complaint. This is part of due diligence for all licensed financial advisors, but they opt not to do it, or else they will not get any investor. If you look right now, most of the victims have no idea about this investments and are classified as conservative investors.
    3. The ILA (Independent Lawyer Advice) was not really independent, because they paid these lawyers. The lawyer who walked us through the document did not emphasize on the part of the document that we signed that "THERE IS A RISK OF LOSING THE ENTIRE INVESTMENT 100%". Though it was on the paper that we signed, but the lawyer never mentioned or elaborated on the part, which is the most important part of the document. This was carefully orchestrated in order not to scare the investors.
    4. There was no "Full Disclosure", which part of due diligence to be performed by the licensed mortgage agent. They did not disclose how much or what percent they will get from such transaction. They are required by the law to write in paper how much is the investment, how much or what will be the percentage that they will get. There should be a breakdown.


    FSCO:
    1. There was a red flag reported way back 2013 by Mr. David Franklin to FSCO which was headed by then Anatol Monid. This person did not pay attention to his report and looked the other way. Maybe, there were two huge coins in front of his eyes and paper money bills plug into his ears courtesy of Fortress. Because come 2017, given the same scenario, FSCO decided to action and took over BDMC and Fortress.

    • | 04 Dec 2018, 02:03 PM Agree 0
      The red flag was 2015 not 2013. My clients and I are still waiting for the FSCO report that was to be issued by the end of December 2015 after we were interviewed by Gary Brennan, a FSCO investigator.
  • Eugene | 04 Dec 2018, 02:16 PM Agree 0
    I’m in the same boat there is no answer or phone calls back.in a country such as Canada we have no protection and no laws. It pays to do crime.why no government officials taking any action?
    • | 04 Dec 2018, 02:32 PM Agree 0
      It was because of the regulators failure that I caused the RCMP to investigate Fortress and the OPP to investigate Tier 1. Contact Martin Williamson of the RCMP Integrated Market Enforcement Team (IMET) and Kaury Jones of the OPP Serious Fraud Office.
      Do you think that charges will be laid?
  • Mike | 04 Dec 2018, 03:51 PM Agree 0
    Seems like a class action lawsuit against Fortress, OSC & the Ontario government is in order.
    • | 04 Dec 2018, 05:12 PM Agree 0
      Really? Who's working on it? I still don't know about anything.
    • Zyre | 04 Dec 2018, 07:02 PM Agree 0
      Hi Mike, may I know also who is the law firm that filed a class action suit with Fortress and, OSC and the government? Please let us know.
  • Victimized | 04 Dec 2018, 06:51 PM Agree 0
    I am in Nova Scotia because fortress was allowed to sell their fraudulent products here so I am guessing there are others as well. These were new products for us and yes thy supplied an independent lawyer
  • Investor defrauded | 05 Dec 2018, 06:46 AM Agree 0
    Another great lawyer who is pursuing class action suits against Fortess is Mitchell Wine out of Toronto .
  • Investor | 05 Dec 2018, 10:49 AM Agree 0
    Yes, if anyone knows of a law firm working on a class action lawsuit please let us know.
  • David Franklin | 05 Dec 2018, 06:01 PM Agree 1
    Read this story by Matthew Scuffham of Reuters published November 30, 2017 that caused FSCO to take action against Fortress finally. Also watch the video of Barry Stevens of Ottawa an investor.
    https://www.reuters.com/article/us-canada-mortgages-regulator-specialrep/special-report-canada-regulator-ignored-warnings-on-risky-mortgage-investments-idUSKBN1DU1YP
  • David Franklin | 05 Dec 2018, 06:04 PM Agree 1
    The Law Society of Ontario issued a notice to lawyers concerning syndicated mortgages on October 24, 2017. If this notice had been issued sooner, would less people have lost money investing in Fortress syndicated mortgages?
    https://lso.ca/lawyers/practice-supports-and-resources/practice-area/real-estate-law/notice-to-lawyers-concerning-syndicated-mortgages#Some_Characteristics_of_SMIs_referenced_in_this_Notice
  • David Franklin | 05 Dec 2018, 06:09 PM Agree 1
    After the Auditor General of Ontario issued its report in August 2014 setting out that FSCO was incompetent, Charles Sousa created a Panel of Three to report to him about FSCO. This report was issued March 31, 2018 which confirmed the Auditor General's report of FSCO's incompetence.
    https://www.fin.gov.on.ca/en/consultations/fsco-dico/mandate-review-final-report.html
  • David Franklin | 05 Dec 2018, 06:23 PM Agree 1
    The Toronto Star was the first major newspaper to publish a story on Fortress on April 29, 2016. This story set out the fee charged to investors from their funds invested. if investors had been told this, would they have invested? Why wasn't this material information disclosed to investors? if it had been, would there have been fewer investors losing money?
    https://www.thestar.com/business/2016/04/29/the-high-risk-world-of-syndicated-mortgages.html
  • David Franklin | 05 Dec 2018, 06:49 PM Agree 1
    The RCMP obtained its search warrant in the Fortress matter in April 2018. The following is an extract from the Sworn Information of Constable Martin Williamson of the RCMP Integrated Enforcement Market Team.
    "32. Investigators believe that the key aspects of this Fraud occurred from 2012 to 2017 and are as follows:
    a. Syndicated Mortgage Investors were presented with inflated “as is” property values securing their syndicated mortgage investment.
    b. Loan to property value ratios that are in excess of 100%.
    c. Promotion of the Syndicated Mortgage as RRSP eligible, when the investments that investigators have examined are not RRSP eligible and could be subject to adverse taxation by the Canada Revenue Agency.
    d. Investment funds being used for purposes other than what was disclosed to investors. A portion of investor funds are not directed to the development project and instead are retained by Fortress Real Capital Inc. at the time of placement of the loan.
    33. As a result of the inflated current as is land valuations, investigators believe that there are currently millions of investor dollars, including retirement savings, where the amount of mortgages on the property exceed the current value of the property. This is contrary to what was told to investors. This has created a risk of detriment to the financial and real estate market."
    Do you think that you were defrauded?

    • | 05 Dec 2018, 07:02 PM Agree 0
      I don't think. I am sure!!
  • | 05 Dec 2018, 08:02 PM Agree 0
    Yes! I was! And FSCO allowed the fraud to continue and flourish. It’s time for massive class action suits. And now!
  • tb | 05 Dec 2018, 09:52 PM Agree 0
    Defrauded is a mild word, WE WERE ROBBED! AND THE CHIEF OF THIEVES IS FSCO! Not to forget FORTRESS'S MINIONS, BDMC, FDS BROKER, and too many more to mention, can't remember all the names, and down to the lowest REFERRAL AGENTS that peddled these scam investments without understanding a thing about what they were peddling, yet they were more than avid recruiters of investors all because of the exorbitant commissions they were getting. They were well trained in lying and in twisting facts just to convince us unknowing victims. The two person that peddled this to me and my late husband were not even mortgage agents,they were life insurance people that suddenly added this product called syndicated mortgage to their line, now, is that legal? Are they allowed to do this as life insurance agents? I hope they're not overlooked in the investigations because its through them that we were introduced to this conglomerate monster! If its legal to put out the names of those who referred us all to this ponzi scam as the CRA terms it,then everyone, please post the names of your referral agents, so that investigators may know and investigate the REFERRAL AGENTS as well. They are just as accountable in every way.
    • David Franklin | 06 Dec 2018, 10:21 AM Agree 0
      Please provide the names of the referral agents and also the mortgage broker/agent and as well the name of the lawyer that provided the independent legal advice.
  • David Franklin | 06 Dec 2018, 10:54 AM Agree 0
    Also name the brokerage, FDS, FFM or FMP and who told you to open your RRSP account with Olympia Trust Company.
    • | 06 Dec 2018, 06:08 PM Agree 0
      This product was sold to me by Mr. Peter Wickwire who was then Pinnacle Wealth Brokers
      His new company name is Wickwire Financial Inc. in Halifax Nova Scotia
  • David Franklin | 06 Dec 2018, 11:35 AM Agree 0
    Black Bear was another syndicated mortgage fraud that was perpetrated against Chinese investors for $9 million by Gary Fraser, who spent 30 months in jail for fraud. Dominic Ha was the mortgage agent and Christopher DiGiacomo, of Niagara Falls, was the lawyer acting on the transaction. York Regional Police would not open a file to investigate despite having evidence of the fraud. Both William Vasiliou, the former Registrar of Mortgages for the province of Ontario and the Toronto president of the Association of Certified Fraud Examiners and I were interviewed by the CBC. The following are links to the interviews.
    https://www.cbc.ca/news/canada/toronto/syndicated-mortgages-losses-1.4083261
    https://www.cbc.ca/news/canada/toronto/ontario-syndicated-mortgages-1.4085415
    • DEVASTATED | 06 Dec 2018, 05:55 PM Agree 0
      I AM "DEVASTED CUSTOMER..POST OF NOV 5TH. CAN YOU HELP? PLEASE CONTACT ME. THANKS.
  • David Franklin | 06 Dec 2018, 12:05 PM Agree 0
    The following are links to SkyCity Winnipeg
    https://www.cbc.ca/news/canada/manitoba/skycity-centre-condo-buyers-money-back-1.4685879
    Capital Pointe Regina
    https://leaderpost.com/news/local-news/court-upholds-bulk-of-boards-capital-pointe-decision
    Union Waterfront Port Dalhousie/St Catherines
    https://leaderpost.com/news/local-news/court-upholds-bulk-of-boards-capital-pointe-decision
    Collier Centre Barrie
    https://www.mortgagebrokernews.ca/news/syndicated-mortgage-fraud-litigation-unlikely-to-recoup-monies-243405.aspx
    Please post other links to Fortress projects
  • David Franklin | 06 Dec 2018, 12:43 PM Agree 0
    Tier 1 is another syndicated mortgage fraud, $119 million, being investigated by the OPP Serious Serious Fraud Office with Grant Thornton as the court appointed trustee and Chaitons acting as the lawyers. Grant Thornton issued a statement of claim against parties involved in this transaction, including Raj Singh, Jude Cassimy the mortgage broker, Michael Cane the appraiser, John Davies and Walter Thomson the developers and Greg Harris and Nancy Elliot the lawyers on October 3, 2018. Why haven't they issued a statement of claim in the Fortress matter?
    Since FSCO failed in its duties as the regulator, why didn't it fund the trustee, the lawyers instead of having investor funds pay them from the sales of the properties and increase their losses?
    The following is a link to a story from a Guyanese newspaper about Raj Singh.
    https://www.stabroeknews.com/2017/news/guyana/12/02/guyanese-man-facing-probe-in-canada-over-mortgages-fraud/
  • David Franklin | 06 Dec 2018, 04:17 PM Agree 0
    I have recently heard from investors that the reason they had not contacted me earlier, was because their sales agents were misleading them by telling them not to worry as there were no problems and that their interest at 8% was accruing. As investors are getting information from FAAN Mortgage, the FSCO court appointed trustee that FSCO did not fund despite causing the problem, that there are problems with their investments, they are not sleeping well anymore, are depressed and now want to take action to get their money back. I have learned that some investors had invested all of their life savings, retirement money and pensions in these investments because they were told that they were safe and secure.
    Why would their sales agents take such advantage of them. I guess that they were only doing this for the high commissions they were being paid. The normal sales commission for mortgage brokers for placing private mortgages is 2-3%.
    What I am having a problem understanding is why so many people invested their money with Fortress, 14,000, when there was so much information on the internet since April 2016, as Macleans published the first story about Fortress, link below. Also why didn't investors take action, especially after the RCMP executed a search warrant, issued by a judge based on fraud, in April 2018.
    https://www.macleans.ca/economy/realestateeconomy/syndicated-mortgages-and-the-coming-condo-market-crash/
  • Momto3 | 06 Dec 2018, 05:50 PM Agree 0
    I was part of the thousands who was scammed by fortress. I did ask questions lots of them. They always had an answer. I met with one of the owners 3x. I explained to him how the money invested was money people gathered when my husband died so that my kids could pay for their education. He guaranteed me each time my money was safe. He looked me in the eye and said that. He even offered the last time we met to sell my investments to another because he “can sell them that fast”. When we agreed, he always had an excuse as to why he couldn’t do it right now. For those blaming the victims. Shame on you! You have no idea what these people did to our lives. My first kid starts school next year. I have no funds to help him. I wonder how many people will commit suicide over this!
  • Baaaad investment in a Brad Lamb Development | 06 Dec 2018, 06:36 PM Agree 0
    In 2014 I invested $25,000 in a Brad Lamb development called the “Orchard”, which was to be built in Calgary. I was assured by my investment advisor from TruFinancial that thissybdicated Mortgage was a safe, low risk investment that would guarantee an 8% return. I was sent multiple emails inviting me to go to the “bus tours” and presentations by Fortress. A broker at FDS (Hal Yesovitch) dealt with us for signing the papers. Term was to be 4 yrs, maturing April 2018. I only received interest payments during the first 2 yrs and then the payments stopped. Lamb did not have enough units sold so he cancelled the condo project. FAAN is now overseeing the administration of this Fiasco. Funds have not been returned to the investors as they are in a Force Majeure. FAAN has advised Mr Lamb is apparently looking at other options such as a rental building. Until then our funds our frozen.
    It is so upsetting that FSCO could have intervened as far back as 2011 however they turned a blind eye.
  • tb | 06 Dec 2018, 11:09 PM Agree 0
    Regarding the comment - "What I am having a problem understanding is why so many people invested their money with Fortress, 14,000, when there was so much information on the internet since April 2016, as Macleans published the first story about Fortress, link below. Also why didn't investors take action, especially after the RCMP executed a search warrant, issued by a judge based on fraud, in April 2018.
    https://www.macleans.ca/economy/realestateeconomy/syndicated-mortgages-and-the-coming-condo-market-crash/"

    My take, in my case - For several years, investors were getting interest payments, alongside referral agents' consistent reassurance that all is well, and consistently provides info on development progress complete with photos etc., as well as direct web reports from Fortress that all is well, brilliant way to keep us content and trusting, and that trust kept me from even bothering to check the internet, and google "Fortress Syndicated Mortgage Fraud", or anything to that effect. When the interests stopped coming, I was told by the referral agents that sold us the scam, that its just being deferred for a while and that we will receive the interests in a lump sum at some point, and that it was also part of our contract to allow the extension. I was continually being re-assured that there's nothing to worry about. Besides, we all have busy lives, some more that others, and squeezing time to check the news in general media can be challenging for some, as in my case, taking care of a sick daughter and a young grandson full time. Also by the time the big news broke in 2016 about the Fortress Fiasco, Fortress already had a choke hold on our life savings and pensions since 2011, so its too late divulging it to the public in 2016 that Fortress syndicated mortgage was a fraud modus operandi. FSCO and all accountable financial authorities did not do their homework soon enough to save us all, "too late the hero" as they say, and of course I wanted to take action, but how, when, where, I'm just an ordinary lay person that doesn't know the ropes to these things, plus the shock of it all left me paralyzed, so much so that I couldn't make a move to save my life, let alone find the funds to hire a lawyer if I even find one, cause Fortress has already taken nearly all we've got financially. I also felt very alone at the time, wondering if I was the only vulnerable one, I thought of how I would fight Goliath alone.It might have helped if the macleans article included comprehensive info on what investors should do, who to go to, who will help them, who they should approach etc. All investors harmed by this, might have wanted to make moves for the longest time after they found out, but the means to do it, the hows, the whos, is not something most lay persons would be savvy about. We need help from those who understands our plight, and I'm sure none of us deliberately went out of our way looking to get scammed! We were hunted down, preyed upon, with our carcasses left out to dry in the dirt. Its astounding that even police officers, honest mortgage agents and brokers, businessmen, alongside the moms and the pops got bitten without warning, some with larger bites than others, so this just shows you how well planned and strategized this modus operandi is and has been from day one, and even while all the red flags has been wagging under FSCO and our financial regulators noses (supposed to be our shepherds guarding the sheep), and we victims were being massacred under their watch, they were merrily going about, enjoying their pay without work. We were left without protection, so maybe they shouldn't get paid cause they didn't do their jobs, and we should get their pay so we can buy enough medicine to heal our wounds, or God forbid for some, so they can pay for their funerals if it comes to a point that they jump the ledge, like some did during the depression, for losing everything they had and leaving uncertain futures for their families. That's tantamount to murder done by our government's financial watchdogs that were supposed to protect us from wolves and predators like Fortress and its minions, and its not just Fortress for the longest time, after this devastation, I continued to research and found that there are many fraud syndicated mortgages out there that has been operating with impunity for so long under FSCO's watch and our supposed financial regulators/ protectors. Now that I know I am not alone, I encourage all harmed investors to pursue seriously banding together and create a tsunami in ONE VOICE, that we need to be vindicated, compensated, the whole works, because the harm is not just financial. The mental and emotional strain, the physical ill health that this has brought to many cannot even be measured monetarily, and worse of all is that its got its ripple effect on the rest of our families, they've been harmed too. I have a daughter with chronic illness, she needs medical help sooner before its too late, and though our Canadian health care system responds, the wait times still needs to be resolved, but I now can't afford to get her the private medical help she needs to address her chronic issues sooner so she can have a better quality of life and be able to take care of her little boy, then I might find some relief too and get a life myself, cause I take care of both her and my little grandson 24/7, but its out of reach now for me, for her and for my grandson. The added strain from this fiasco is really starting to do a number on my health, but I can't afford to be sick, as I have two people dependent on me in every way, including financial. PLEASE, EVERYONE AFFECTED BY THIS HEARTLESS FIASCO, PURSUE UNRELENTING, TO CONNECT TOGETHER, SO WE CAN CREATE ONE TSUNAMI VOICE THAT THIS KIND OF UNCONSCIONABLE ACTS AND LACK OF ACCOUNTABILITY FROM THOSE WHO SHOULD HAVE BEEN PROTECTING US, AND THAT'S OUR GOVERNMENT, MUST STOP....FOR GOOD! A FACEBOOK ACCOUNT FOR ALL HARMED INVESTORS HAS BEEN CREATED, PLEASE JOIN! LETS NOT MAKE OURS AND OUR FAMILYS' SUFFERING BE FOR NOTHING. MAKE THE HARM AND THE HURT COUNT FOR SOMETHING! A FEW CAN ONLY MAKE RIPPLES, BUT AN ARMY OF US CAN CREATE A TSUNAMI FOR CHANGE, VINDICATION AND RIGHTFUL COMPENSATION FOR OUR CHILDREN, OUR GRANDCHILDREN AND ALL THOSE IN OUR LIVES WHO IN ONE WAY OR ANOTHER WAS HARMED AND AFFECTED BY THESE UNCONSCIONABLE ACTS!

    JOIN US NOW, SO WE CAN ALL MOVE FASTER FOR CHANGE AND VINDICATION. THE FACEBOOK LINK IS ALL OVER THE FORUM! I CONNECTED THROUGH ERIC T. MENDOZA

    Dear all, we are all on the same boat. We created a group FB, here is the link.... https://www.facebook.com/groups/257784194883101/

    Our objective is to rally all the victims of this insidious company named Fortress and also to make FSCO liable for their incompetence, because they were too late to regulate this syndicated mortgage which was already reported to hem way back 2013, and yet they did no act immediately and waited until 2017 to act.

    My name is Eric, one of the moderator of this FB group named ,,
    "Investors" of Fortress Developments and BDMC.



    • Deborah | 08 Dec 2018, 12:04 PM Agree 0
      Dear TB,

      I agree with what you said 200%. Thank you for saying what I am thinking.
  • David Franklin | 07 Dec 2018, 01:18 PM Agree 0
    No knowledgeable mortgage lender would ever invest in a mortgage if there was a Force Majeure clause as they require a date certain for maturity,
    Fortress’s lawyers must have come with this clause to protect Fortress and it’s developers to delay repaying investors. This further confirms that Fortress knew that the investors never read the documents and neither did the sales force.
    Complaints from investors were filed with FSCO and it never took action until the Reuters story published November 2017. Why have regulators since they do not protect the public.
    The OSC claims it protects investors by requiring full disclosure, but it knows that is not true since how many investors understand the many paged prospectus and offering memoranda. Some of these documents have clauses stating that you can lose all your money in the risk section, so when you lose your money you cannot complain because you were told. This protects the issuers and not the public.
    • RS | 11 Dec 2018, 09:41 PM Agree 0
      Orchard project does not have a force majeur clause. We were provided a notice that stated there was such a clause, however, there is nothing in the sales agreement. FAAN finally acknowledged this to me. I have asked why a retraction notice has not gone out. Silence from FAAN and the law firm that has been court appointed.
  • David Franklin | 07 Dec 2018, 02:27 PM Agree 0
    It also protects the sales force as well.
  • So Angry.... | 07 Dec 2018, 02:28 PM Agree 0
    I'm so angry, sad and disheartened!! My husband passed away in a car accident last year and low and behold when I look into his pension it was with Fortress! They scammed him out of his pension, lied to him and stole something that wasn't theirs to take. I have been asking everyone everywhere but I get NO ANSWERS from anyone. He worked his whole life for this money. After he passed away I lost our family home, our car and everything we owned! I'm trying to get by week by week and am ready to give up. FORTRESS took everything from us. I don't know what to do or who to turn to! If anyone has any information on how these crooks are getting away with this I'd love to hear it!
    • Zyre | 11 Dec 2018, 05:59 PM Agree 0
      Join us...
      "Investors" of Fortress Developments and BDMC.
  • Kathy | 07 Dec 2018, 09:01 PM Agree 0
    We invested $135,000 in Crates Landing aka South Shore, our investment we were told was safe. Even our names were on th title and we were told "the land is partially ours and our name is on it, even if something happens you are now owners" After a few years after being told of various stalls in the project that they wanted to extend the project. We declined in 2014 and all our emails and letters were ignored. At that oint, that was already planned the money would not return as we did not get any response to anything. All agents and lawyers in this scam should be held accountable. This is fraud at the highest level. In addition our RRSP was used, and was in B2B, their chosen bank, then they told us B@B can't handle the account so we must move to Olympia, when we refused they told us we had on choice and transferred us anyways. Maybe B2B had something to do with it and was caught, or maybe they found out what was up and wanted out. Now Olympia wants fees to handle the money they took, and passed to the thieves, the charge to handle money they stole. unless we put the money back, and why would we do that? to pass the money again to Olympia? and have that disappear? Absolutely crazy theft.
  • investor | 09 Dec 2018, 05:52 PM Agree 0
    I invested in a project called Old Market Lane in the City of Vaughan, Ontario. I was sold this "investment" through Jenny Hong at Mortgage Alliance/Lending Superstore. This was supposed to be for a two year term, possibly three. A few months into this term, I was told I had to re-sign a new term, making it a four year project from that point. Unbeknownst to me, when I re-signed the new term, this knocked me down into a fourth place position in terms of the mortgage, from second position, was initially explained to me. My quarterly interest payments started on time, however after three quarters, stopped. They started again briefly for one more quarter approximately a year later, but then stopped completely. Every time I called to ask questions of the mortgage broker, or Fortress, I was lied to or given false information and was constantly told not to worry, my money was safe, and this was a very safe, low risk investment. Eventually I stopped believing what I was being told and then decided to take action. I had also asked both Jenny Hong, and Tony Mazzoli at FFM Capital (the other brokerage that was linked to Fortress) that I wanted out of this investment and to please find a replacement investor to take my place, as I was told this was an option. Needless to say, this never happened. I am not sure if anyone out there was invested in this project also, but now there is a notice of sale on this property. So the likelihood of me getting my money back out of this so-called investment is low. Again, I am not sure if anyone else out there dealt with the same people I did. At FFM Capital, I dealt with Tony Mazzoli and Krish Kochar. Hopefully something can be done here. There are approximately 14,000 victims of this fraud, and Fortress raised over $900,000,000. This is troubling to say the least. People have lost their retirements, life savings, and their children's education money over this.
  • VITA | 09 Dec 2018, 08:06 PM Agree 0
    I acted in good faith when I made a decision to invest in the development of Canadian real estate.
    I chose the company Fortress to handle my real estate investment. I knew that they had been around for about ten years and had successfully completed projects for investors.
    I trusted Fortress with my locked-in RRSP funds, as well as the mortgage agents who initially helped me to invest in these projects with Fortress.
    I invested into three projects with Fortress.
    I worked more than fifteen years to earn those locked-in RRSP funds.

    I lost trust in Fortress when news came to my attention regarding the RCMP raid on Fortress offices in April 2018.
    RCMP had launched an investigation against Fortress for suspected syndicated mortgage fraud.

    I could not believe what I was reading in this article.
    Real estate was usually a solid investment with a positive return.

    Since July 2014 when I first invested with Fortress until present, I have seen my financial hardship range from average financial hardship to extreme financial hardship.
    This financial hardship that I continue to experience not only affected me, but other members of my family.

    I planned for those real estate investment funds to help me in my future, so I wouldn’t have to work so hard for money.
    I planned for those real estate investment funds to help me in my future, while I am in the process of building a business.

    I hope for a positive outcome for all investors involved in this situation with Fortress.
  • VITA | 09 Dec 2018, 08:11 PM Agree 0
    I acted in good faith when I made a decision to invest in the development of Canadian real estate.
    I chose the company Fortress to handle my real estate investment. I knew that they had been around for about ten years and had successfully completed projects for investors.
    I trusted Fortress with my locked-in RRSP funds, as well as the mortgage agents who initially helped me to invest in these projects with Fortress.
    I invested into three projects with Fortress.
    I worked more than fifteen years to earn those locked-in RRSP funds.

    I lost trust in Fortress when news came to my attention regarding the RCMP raid on Fortress offices in April 2018.
    RCMP had launched an investigation against Fortress for suspected syndicated mortgage fraud.

    I could not believe what I was reading in this article.
    Real estate was usually a solid investment with a positive return.

    Since July 2014 when I first invested with Fortress until present, I have seen my financial hardship range from average financial hardship to extreme financial hardship.
    This financial hardship that I continue to experience not only affected me, but other members of my family.

    I planned for those real estate investment funds to help me in my future, so I wouldn’t have to work so hard for money.
    I planned for those real estate investment funds to help me in my future, while I am in the process of building a business.

    I hope for a positive outcome for all investors involved in this situation with Fortress.
  • Down but not Out | 09 Dec 2018, 11:22 PM Agree 0
    WHITE COLLAR CRIME PAYS IN CANADA
    11,000 people DEFRAUDED out of MILLIONS and no one seems to care!
    White collar crime is just as serious a crime as murder! Me and my family have been affected by the actions of the FORTRESS GROUP just as if I had been shot by a gun or run over by a car. At least if I was dead my family would still be able to carry on financially. With white collar crime the money is gone and we’re left to cope with GRIEF and FINANCIAL RUIN! And the perpetrators get off with a slap on the wrist and are able to go out and prey on the next bunch of unsuspecting victims!
    Between 2007 and 2009, when VINCE PETROZZA and JAWAD RATHORE were directors of Phoenix Credit Risk Management and Phoenix Capital Resources Inc. they admitted to a stock manipulation scheme which contravened the securities law and engaged in 'conduct contrary to the public interest' and subsequently had to pay $3,000,000 to the Ontario Securities Commission to compensate victims.
    Forward to 2011 when they moved on to start the FORTRESS GROUP OF COMPANIES, which included FDS BROKER SERVICES INC., FFM CAPITAL INC. and FMP MORTGAGE INVESTMENTS INC and then set out to DEFRAUD 11,000 other unsuspecting people.
    YOU SEE FOLKS, LEOPARDS DONT CHANGE THEIR SPOTS!!!
    In 2012 I was introduced to a friend of my boss who was a mortgage broker. I trusted him. He presented me with the Mady/Collier project in Barrie and as I was born and raised in Barrie it seemed like a good fit. I would be helping with a local project. I did my homework before I invested, checked out Mady Homes, who had a 40 year stellar track record, the City of Barrie was planning on leasing one whole floor as well as a group of Barrie lawyers who were leasing another whole floor. The project seemed solid. Many people much smarter than me (other investment brokers, police officers, businessmen) were investing. Had I seen even one article that FSCO hinted at problems with Fortress or syndicated mortgages I would have backed away. I was told that I would need a minimum of $100,000 or they wouldn’t even consider me. So I put $60,000 RRSP money and obtained a HELOC for $40,000. This was to be for 2 years until the project was completed with a possible extension of 6 months. Never at any time was I told that there was a possibility that I could lose my money. Unfortunately before the 2 years was up Mady declared bankruptcy. At first my broker kept assuring me that everything was fine. He even went so far as to bring Jawad Rathore up to Barrie to meet with me and they both assured me I was still on title and that Fortress was going to step in and finish the project. Gradually after that my agent was becoming more distant, not answering phone calls or emails and eventually then nothing from him at all.
    Meanwhile, my husband had had a stroke and was diagnosed with dementia. I had been commuting to Mississauga for my job (office administration) and had to quit to be closer to home. I took a minimum wage retail job but eventually the financial strain and emotional wear and tear got to me and we had to sell our home which my husband had lived in for 54 years. We moved to a small retirement community 30 kms outside of Barrie where I could get some caregiver assistance and I am still working part time at another minimum wage job at the age of 72
    The hopes of ever recovering my money were disappearing and I didn’t know who to turn to. It was embarrassing to admit to anyone what I had done and had lost our retirement savings. By chance, a few months ago, I was 'googling' Fortress and found David Franklin's name. I emailed him and he got back to me the same day. Through him I have found other investors who have all be defrauded by Fortress and let down by our own government.
    FSCO should be sued for not doing their job to protect Canadians from this situation. They ignored the evidence their own staff presented to them back in 2011.
    Why were these low life scum bags allowed to set up shop as FORTRESS and perpetrate fraud on 11,000 more investors with their previous track record.
    Where was FSCO and why did they allow this to happen?
    • Dismayed at our society | 10 Dec 2018, 02:05 PM Agree 0
      You are absolutely right. How can this happen?? FSCO needs to be held accountable as does fortress and all the mortgage brokers who sold these products. Let’s group together and commence class action suits. We need to get this money back for people. This is a crying shame and NONE of us are just going to let this pass. Contact David Franklin, contact Mitchell Wine. Let’s get things starred people, and let’s keep the pressure on. Things are starting to snowball here with all the victims of this horrendous fraud. Keep the comments coming. Join the Facebook group. Email Bill Morneau. And keep emailing him. The time for action is now.
  • | 10 Dec 2018, 02:13 PM Agree 0
    IS THERE A CLASS ACTION LAWSUIT ALREADY STARTED? I THINK WE SHOULD ALL JOIN NOW AND PROCEED BEFORE THESE SCUMBAGS LEAVE THE COUNTRY!!!! ANY INFO TO JOIN WOULD BE HELPFUL.
    • | 11 Dec 2018, 09:38 AM Agree 0
      Yes - Mitchell Wine has commenced several class action suits (each individual project is its own suit). Maybe reach out to him and see where things stand currently.
  • Scammed investor | 10 Dec 2018, 03:03 PM Agree 0
    I am struggling with depression and anxiety. I feel abused, robbed, fooled. I don't know what to do and how much more I can bear this pain. How can FSCO allow Fortress to run the biggest scam in Canada and still keep their eyes closed for the damage done. Nobody is actively working to recoup our money.
    Nobody cares!!! Ford cares about buck a beer! Unbelievable!!
    • Krista | 11 Dec 2018, 07:47 AM Agree 0
      You are not alone. People do care and are working hard on this. Stay strong.
  • Investor Voice | 10 Dec 2018, 08:28 PM Agree 0
    There is a lot of inaccurate information being shared consistently by the same people. Most of this misinformation adds further harm to investors. Investors don't know what to believe. A lot of the reality is not being shared. Attempts were made to get the information out. The media that has been reporting on this for some time ignored information that was sent to them on October 1, 2018. This information was sent with supporting information, including court documents. One reporter that did engage acknowledged reporting information provided by a person on this forum without verifying the information first. This reporter also acknowledged reporting about lack of disclosure without ever reviewing any of the disclosure documents. This adds risk to Investors. A presentation was created for investors to get a better understanding as to why we are here and what can be done. Many of the ( non investor) people who have consistently shared information have done so without supporting data. They seem to have a mandate and some who were involved in creating the situation are trying to profit off it. The presentation that was created has supporting documents to back up the points. The goal is to get this presentation to as many of the investors as possible. FSCO is responsible for this but there are many factors that have led to this. At the top of this forum it says, "Mortgage Broker News forum is the place for positive industry interaction and welcomes your professional and informed opinion." It is time for people to get informed. If you want a copy of the referenced presentation, please email investorvoice@hotmail.com and request a copy.
    • Scammed investor | 11 Dec 2018, 03:47 PM Agree 0
      This is pure spinning in favour of a scam company that defrauded honest investors of hard earned money. It’s a sophisticated scam of mass proportions. Over 11,000 investors are/will be defrauded. Had investors known that brokers were getting 35% commission on the investment and that investors were receiving their 8% interest from their own funds and had we known that FSCO was incompetent and that the ILA lawyer was in cahoots with Fortress, no one would ever handed over money; Notwithstanding that brokers/agents blatantly lied about the risk involved with the scheme or really scam.
  • Investor Voice | 10 Dec 2018, 10:41 PM Agree 0
    Misinformation helps no one:

    1) RCMP is investigating fraud. No charges have been laid or proven. David Franklin proudly shares that he went to the RCMP in November 2016 to request the RCMP to look into potential fraud.

    2) Opinions of Value were used and were disclosed as such with assumptions noted. FSCO did multiple audits of the Brokerages and were aware of their use but did not point them out to be an issue. About 30 projects returned funds to investors with returns that surpassed 8% with Opinions of Values used. The majority of these projects exited via refinance (where a bank saw value) or via sale (where a developer saw value).

    3) Independent Legal Advice: The lawyer's did not convince or advise investors to invest. They simply went over the Law Society Form 9D to ensure investors were aware of specific details of the investment as per the form template. This information remains constant regardless of where lawyer fee came from. (Not making a determination on who should pay.)

    4) Investors were advised in the FSCO disclosure that the investment was considered High Risk, was not insured by the Government of Ontario, "This mortgage investment cannot be guaranteed by the mortgage brokerage. If you are not prepared to risk a loss, you should not consider mortgage investments."

    Any agent that sold the investment and said that it was low risk and / or guaranteed should not have made those claims. The disclosure would have advised otherwise.

    5) On Nov 5, Mortgage Broker News says in this forum, "A couple of mortgage brokers refused to answer MortgageBrokerNews.ca’s questions" but a meeting was had on Oct 4 with an agent and the reporter offered to do an interview with this agent...Dec 10...and still no interview. Maybe the content of the conversation did not meet the criteria.

    6) David Franklin has been quoted in the media against syndicated mortgages, his website is 100% dedicated to be against syndicated mortgages, he went to the RCMP to initiate their investigation, he had some involvement in proposed class actions that were unsuccessful last year (please read: https://www.canlii.org/en/on/onsc/doc/2017/2017onsc4791/2017onsc4791.htmlsearchUrlHash=AAAAAQAIRm9ydHJlc3MAAAAAAQ&resultIndex=3), he wrote letters to prominent groups including construction lenders claiming that Fortress was engaged in Fraud. All these actions added risk to investors...now he wants to represent them and profit off a situation he helped create.

    There were some syndicated mortgage companies that did have issues...but all shouldn't be painted with the same brush. This investment is not without risk and delays and extensions are some of the most common risks. Was regulation lacking...Yes...but the regulation was the responsibility of FSCO.

    Are projects at risk? Yes...but there are reasons. Email investorvoice@hotmail.com to request a copy of a presentation for investors.

    Some on this forum will attack this message but if people truly want answers and want to help the situation, factual information is of utmost importance. Try winning a court case on baseless claims...would be a waste of money with investors holding the bag. Hear all perspectives, verify claims, review credible sources and then choose your path.
    • | 11 Dec 2018, 03:02 PM Agree 0
      Coming from someone who sold lots of this junk to unsophisticated investors, I believe you can not be called "Investor Voice", you should be called "Fortress/BDMC voice", your opinion is totally biased. I know because I am an investor and I guarantee you Sir that NO ONE has named this investment "risky investment" and neither I have asked to invest in anything risky! You should shame yourself for destroying so many lives indirectly.
    • Fighting against Fortress | 11 Dec 2018, 03:35 PM Agree 0
      You state that: 4) Investors were advised in the FSCO disclosure that the investment was considered High Risk, was not insured by the Government of Ontario, "This mortgage investment cannot be guaranteed by the mortgage brokerage. If you are not prepared to risk a loss, you should not consider mortgage investments."
      —Investors were lured in by brokers and investment advisors stating this was a low risk investment. At no time did my advisor ever tell me that this was a high risk investment. Do you really think all these investors would have invested 25k to 500k if this was a high risk investment?
      I don’t think you have any idea as to how many thousands of investors’ lives have been torn upside down by the Syndicated Mortgage shady industry.
  • Skycity Scam | 11 Dec 2018, 05:01 AM Agree 0
    As if this isn't bad enough for all of us I am reading that these investments are not RRSP eligible as was told to me by the lawyer (crook) and broker (bigger crook)that sat at my kitchen table. How the hell am I supposed to know the difference? If a lawyer tells me (and signs) the paperwork what recourse do I have? So what I am getting from this is that even if I lose all my money I will still owe taxes on the investment..
  • David Franklin | 11 Dec 2018, 02:29 PM Agree 1
    Investor Voice, please advise who from Fortress told you that 35% of the investors' funds were being paid from the monies raised from investors and when you told this?
    When you sold these investments to your investors, did you tell them about the 35% fee? If you did how did you explain this fee to them?
    Did you tell your investors that
    1. the 8% interest payments were being paid from the monies they invested?
    2. they needed to open their RRSP accounts with Olympia even though it was not licensed to do business in Ontario in order to invest in Fortress mortgages?
    3. according to the Olympia Trust Company RRSP account documents they signed that they were responsible for determining that their investments were RRSP eligible and if they weren't that they were required to pay to CRA a tax of 50% of the amount they invested?
    4. they required a current as is appraisal from a qualified appraiser and that the opinion of value was based on a future value?
    5. the FSCO Form 1, Investor/Lender Disclosure Statement had the box for appraisal checked when there was no appraisal and only an opinion of value?
    6. these were high risk investments suitable only for sophisticated investors who could afford to lose all of their investment?
    7. the 8% return was below market rate and should be 20-30%?
    8. there were safer mortgage alternatives such as residential first mortgages at 70% loan to value based on a current as is appraisal for a one-year term at 8%?
    9. the Form 9D was a Law Society of Ontario form that had to be completed by an Ontario lawyer and not by a mortgage broker, Ildina Galati?
    10. mortgages do not contain Force Majeure clauses but certain Fortress mortgages did and that this could allow the borrower to extend the maturity date forever?
    11. the developers were not blue chip since “Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.”.
    12. the lawyers providing independent legal advice were being paid from the 35% fee and that that the lawyers providing this service were not in compliance with the Rules of Professional Conduct of the Law Society as set out in the notice the Law Society sent out? Read the following link. https://lso.ca/lawyers/practice-supports-and-resources/practice-area/real-estate-law/notice-to-lawyers-concerning-syndicated-mortgages#Some_Characteristics_of_SMIs_referenced_in_this_Notice
    13. when a Fortress mortgage failed that investors were placed in other Fortress mortgages contrary to MBLAA and other laws, SkyCity in Winnipeg being one of the projects where this happened?
    14. as example of loan to values, that the closing of the Collier Centre in Barrie purchase was $4 million with only $500,000 as a down payment in July 2012 and that that mortgage of about $17 million was registered in August 2012, about 4,25 times the purchase price?
    15. the OSC sanctioned Jawad Rathore and Vince Petrozza in December 2011?
    16. the Auditor General of Ontario issued its report in August 2014 stating that FSCO, the regulator that was to protect mortgage investors was incompetent?
    17. the Panel of three created by the Minister of Finance, Charles Sousa, issued its report to the Minister in March 2016 which confirmed that FSCO was incompetent?
    Why isn’t Fortress funding the expenses of the trustee FAAN Mortgages and the lawyers involved with them, since 35% of the $920 million raised was $322 million?
    After you respond to these questions, I may provide you with more questions to answer?
  • Zyre | 11 Dec 2018, 06:34 PM Agree 0
    This message is for the so called "Investor Voice" aka "Fortress Voice".....

    Tell me now what you can say about this Georgetown project known as Glens of Halton Hills. Total money invested to this project was $22.5 million, and yet the project went bankrupt? Pity to the syndicated mortgage investors through BDMC, their $14M just went up in smoke, and of course, if there are losers, there are winners and JYR is the winner, getting a windfall at the tune of $15.5M. How did it happen? They are the lone purchaser of this project and they just paid $7M to take over the project.

    Now, what can Investor Voice aka Fortress Voice can tell me about this project. You told me that I have a lien on the property because my name is there, now can you point me the property that belongs to me? You bunch of liars.
  • RS | 11 Dec 2018, 10:08 PM Agree 0
    I sent the following email to FAAN and the court appointed lawyer:

    I am writing on behalf of a number of investors in The Orchard project, they are cc'd in this email. We are also in the process of finding more investors to share information with. I am looking for a timely response to the following items:

    1) The project is still in the pre-construction phase and the land is being used as a parking lot. Are there any changes to this status? Is there a valuation on the project?

    2) Under BDMC, investors lent $15.8M. What is the status of these funds? What are they being used for? Has an audit been done on these funds? Is interest accruing on these funds? What efforts are being made to ensure these monies being protected?

    3) Investors were given notice that the "force majeur" clause was being invoked. Since that time, it has been made clear that there is no such clause related to our investment:
    a) Why has a correction notice not been sent out?
    b) Please provide written confirmation that there is no force majeur clause applicable to this investment and that interest is accruing

    4) Given that there is no force majeur clause:
    a) interest should be accruing on our investment. Where can we find a record of the outstanding interest owed to investors?
    b) our investment matured in 2018, please confirm
    c) if there was an extension to the loan based on the Article 4 of the Loan Agreement, the Borrower is required to provide, in writing not less than 3 months prior to the maturity date that it is extending the maturity date by 1 year. Was this notice provided? If so, was it provided in a timely way? If so, where is the notice? If so, what is the exact new maturity date in 2019?

    5) In the Loan Agreement, Article 6 states that interest is paid quarterly, and shall be paid from Interest Reserves raised by the Lender and included as part of the loan amount for the first 4 years of the Term. What happened to the Interest Reserves? Why did payments stop short of the 4 years?

    6) What are the next steps being contemplated in relation to this investment?
  • Investor Voice | 11 Dec 2018, 11:53 PM Agree 0
    Mr. Franklin, we have had similar correspondence before and you seem to use the same points repeatedly. The purpose of the presentation mentioned earlier is to inform investors of information not being shared. This information is supported by documents within the presentation. It is not meant to tell investors what to think but to share information. Once they see and review the supporting documents, let them come to their own conclusions.

    They must also be aware of what to be careful of.
    You irresponsibly use selective information to confuse investors who are not aware of all the facts as they are not shared in forums or in the media.

    Since this has been a fluid situation where many changes have been enacted over the last few years, in your list of issues above, you mention some things that were not restricted at points in time to claim they were wrongdoings even though as the rules changed, processes changed. The Law Society publication you shared is from October 2017. The investment has been around from well before then.

    There is no argument regarding FSCO being responsible. The brokerages are not responsible for enacting regulation, only acting within it. FSCO did audits of the Brokerages over the years and did not have issues with many of the items pointed out now.

    If certain agents sold the investment as safe and guaranteed, they did so at their own discretion and that was wrong. The documents disclose otherwise and the brokerages did not support that behaviour.

    The RCMP investigation is an investigation, not a conviction or judgement. Furthermore, it is an investigation initiated by you.

    You are trying to make the claim that the investment may not be a qualified investment for Registered plans. That would cause investors to be penalized by a 50% tax. How does that help investors?

    Your actions over the last few years may have helped bring the situation to where it is now and when investors are at risk of losing, you are potentially creating further loss?

    If investors work with you in a class action and then lose, you would have earned your fees and they would be liable for awarded costs.

    People need to be aware of all of this. There is no point in childish back and forth. Just sharing facts. To all that want to be informed, please email investorvoice@hotmail.com to request the presentation. For people that are not interested in being informed, that is your choice but don't attack people for sharing information that may help you.

    You cannot make a determination with partial information.
    • Victim | 12 Dec 2018, 05:30 PM Agree 0
      Please, don't tell me that the Brokerage did not instruct the Mortgage agents to market this crap to unsuitable and inexperienced investors the way they wanted and did. Misleading marketing and false information. You are all crooks!! You all should be arrested and I hope this happens soon! You must be hurt your fat commissions got cut off! No more easy money from scams. Fortress raised a lot more money than those properties were worth!
  • Screwed Investor | 12 Dec 2018, 11:37 AM Agree 0
    I was presented an investment opportunity for a commercial development in Burlington, called Bronte Crossing. The plan was for 3 commercial – 1 story buildings with parking, just off the QEW.

    After being presented with the package, I googled earth the property and saw that the land was not developed. So I drove by to the land, and notice a big for sale sign.

    Something was fishy, so I called the City’s Planning Department. The Planning department stated that the “land has not been approved for development, no applications have been received, and that Fortress and its Developer are not even the owners”.

    Meanwhile, the marketing material presented, clearly stated that the project is approved and under the ownership of the developers.

    Furthermore, the Bronte Crossing was marketed as a 1 lot development, and the lots were in fact 2 lots, under 2 different ownerships, and NOT even owned by Fortress or its Developer.

    I then researched the “Appraisal” done by “Legacy Global” indicating the values, and to my surprise Legacy Global were not appraisers, and it was a PO Box downtown (I suspect it’s another layer fictitious entities, possibly owned by Fortress).

    Therefore, what I am trying to point out is that, every piece of masterly constructed fraud, was put together by Fortress…plain and simple.
  • Investor Voice | 12 Dec 2018, 11:53 AM Agree 0
    Investor Voice has been working on behalf of all investors in this without many even knowing. It is being done voluntarily and with many hours of work. When FAAN began holding investor funds in May, Investor Voice began spreading the information and wrote a letter that went out to investors that it could reach and they endorsed it and these letters went to FAAN, FSCO and the Courts. When FAAN tried avoiding the concerns, another letter went to FAAN, FSCO, Ontario Securities Commission, Canadian Securities Administrator, Minister of Finance - Ontario. Information went to the media that was ignored. After pressuring FAAN and email correspondence with them for weeks, Investor Voice met with FAAN and their lawyer, Osler's after a night of no sleep, preparing for the meeting. Investor Voice was in the Courtroom on Oct 30 for FAAN's 2nd report to witness the process to be able to share with others. Investor Voice is mentioned in FAAN's 2nd report. The referenced presentation took 2 weeks to put together after researching documents to share, etc. All this is being done with no without investors even knowing.
    Throughout this process there was many pieces of information that was not out. Investors have a right to know everything. Projects are in trouble, but not without reason. Many investors are just blindly following people they think they should trust. Making rash comments without facts and having people gravitate to the negative is not a solution. Instead of attacking comments, why not read the documents. Email investorvoice@hotmail.com to request a copy of the presentation. Many on here have already reached out requesting a copy and I commend them for that.
    • Fuming after Fortress | 12 Dec 2018, 02:18 PM Agree 0
      “ after a night of no sleep” Really? I can tell you that the investors have had MANY sleepless nights. Some investors have lost their homes, cars, lost money for their children’s education, cannot retire because of this fiasco & scheme. I asked my investment advisor and called FDS for more answers when I heard the Orchard was cancelled and no one had answers and told me “not to worry”.
  • David Franklin | 12 Dec 2018, 12:19 PM Agree 0
    Investor Voice
    You did not respond to my question about who at Fortress told you about the 35% fee and when you were told this. Please respond to this question as it would be of benefit to the investors to know this.
    I have met with and spoken with mortgage agents who sold Fortress mortgages and they told me that they were not advised of the 35% fee and if they had been that they would not have sold these mortgages. I have met with and spoken with investors who were not told this and they all advised that if they had been told of this 35% fee that they would not have invested.
    Under criminal law a falsehood, deceit or other fraudulent means can be committed by acts or omissions or failure to disclose information to the investor) that would be relevant or of interest to such an investor in regard to circumstances that could affect the value of the investment.
    Since this material information was not provided to the parties I met and spoke with, do you think that the parties who knew this information and did not disclose it committed a criminal offence?
  • David Franklin | 12 Dec 2018, 01:29 PM Agree 0
    Who is Investor Voice
    I have learned that Clarence Godinho, a FSCO licensed mortgage agent, M13000269 with Solid Ground Mortgage Solutions Inc. link to its website below, is the Investor Voice or one of the Investor Voice parties. Why is he, or other parties involved with him, providing information that is claimed to be of benefit to Fortress investors? Are they concerned about their liability to the investors that they sold Fortress mortgages to and are trying to delay their investors from suing them, as commented upon by Ron Butler in previous posts?
    When you look at the website you will learn that Arif Khan, the Municipal Councillor for Ward 8 in Barrie, is the principal broker for Solid Ground Mortgage Solutions Inc. and Hal Yesovitch is an agent with that brokerage. Both of them sold Fortress mortgages. Hal Yesovitch was with FDS Broker Services Inc., that just recently filed for bankruptcy. Other agents with this brokerage listed on its website are: Klaudia Nabialek, Chris Partridge, Kissondra Niemeyer, Robyn Latchman, Michael Del Bel and Jeffrey Goodman. Did any of these agents sell you Fortress mortgages?
    Arif Khan previously had a brokerage called Strategic Capital Network Inc.
    Arif Khan was a Barrie Councillor when Fortress mortgages on Barrie projects were being sold to investors. Did he have a conflict of interest?
    https://solidgroundmortgages.com/about/our-team/
    https://ca.linkedin.com/company/the-strategic-capital-network

    • El Bastardo | 12 Dec 2018, 01:54 PM Agree 0
      So was Philip Tse. He worked with Hal Yesovitch at FDS Broker.
      They're now registered with am exempt market dealer:

      https://rethinkdiversify.com/ontario

      Life is great when you can continue working normally after selling syndicated mortgage investments.
  • Fuming after a Fortress. | 12 Dec 2018, 01:57 PM Agree 0
    Hal Yesovitch was the broker who sold me my Fortress Mortgage.
  • Scammed investor | 12 Dec 2018, 02:18 PM Agree 0
    Wow, layers and layers of deception. It’s like peeling an onion to get facts on this sophisticated scam. The brokers and agents that sold these mortgages as safe instruments blatantly lied about the state of development of projects in order to sell them as a no brainer safe investment. So safe that, they were regulated by FSCO and were RSP eligible (with Olympia Trust). They were purely motivated by high commissions (greed) and capitalizing on unsuspecting mom and pop investors who were looking for higher yield on their savings over what the banks were paying at the time.
  • David Franklin | 12 Dec 2018, 02:30 PM Agree 0
    If you want to learn more about Clarence Godinho, watch his video on the link below from Cash Flow Tutor.
    http://www.cashflowtutor.ca/
  • David Franklin | 12 Dec 2018, 03:01 PM Agree 0
    FAAN Mortgage was appointed the trustee for BDMC which has 11,000 Fortress investors and about $650 million of Fortress mortgages. Derek Sorrenti is the trustee/administrators for the remaining 3,000 investors. No trustee was appointed to act on his mortgages. Derek Sorrenti was one of the lawyers providing independent legal advice. If you are not getting notices from FAAN concerning your mortgage, it is because Derek Sorrenti is the party that should be providing you with the information.
    The Law Society of Ontario is allowing him to continue practicing despite knowing that he provided independent legal advice to Fortress investors.
    Please let me know if he is your trustee/administrator.
  • David Franklin | 12 Dec 2018, 03:04 PM Agree 0
    Some Twitter links from friend Clarence Godinho

    https://twitter.com/CashFlowTutor/status/665968169643876352
    https://twitter.com/CashFlowTutor/status/667006494274138113
    https://twitter.com/CashFlowTutor/status/667009089696874496
    https://twitter.com/CashFlowTutor/status/700452667219283968

  • LOST | 12 Dec 2018, 03:52 PM Agree 0
    THERE ARE OTHER SCUMBAGS THAT DUPED US INTO INVESTING OVER $247,000 WITH FORTRESS. THEIR NAMES ARE RIYAD MOHAMMED, FAHAD ALI AND ZAFAR. THE PROJECTS ARE HARMONY VILLAGE LAKE SIMCOE NOW RENAMED AS THE KEMP, COLLIER MADY CENTRE AND PORT PLACE.
  • David Franklin | 12 Dec 2018, 04:36 PM Agree 0
    I believe that Ron Taverner, who was appointed Commissioner of the OPP, is the best person to be the Commissioner because of his knowledge, expertise and leadership abilities.
    If you agree, please email your member of provincial parliament and tell him you want him to be your Commissioner of the OPP>
  • Investor Voice | 12 Dec 2018, 04:45 PM Agree 0
    I have not denied the fact that I am an agent. As an agent I have a duty to my clients and when I see things happening that are not right, I want to make it known. The other people and businesses Franklin has mentioned are not part of Investor Voice or what I am doing. I am doing this on my own. I was aware of the consequences, I knew eventually Franklin would come at me because that is what he does. He wants to control the narrative and anyone who speaks against him, he will try to attack. I could have been quiet and not get involved and not be exposed to attacks but I am not afraid of it. It is more important for me for people to know all the information. I was not an employee of Fortress or the Brokerages. I am an independent agent and FDS Broker Services was the Brokerage I was contracted with and they held my license. I initially started Investor Voice to fight FAAN and FSCO over what they were doing with holding investors funds from a completed project. I used Investor Voice to protect myself from any retribution from FSCO for speaking up. When I met with FAAN and their lawyers in October, I had to make my identity known. After sending information to the media, a reporter got my name and said he would keep me anonymous but a week later David Franklin reached out to my Investor Voice email and over the next 30 days, Sent me about 50 emails trying to get me on his side. He obviously saw me as a threat that would impact his campaign. At this point, I have investors representing 1200 investments aware of the situation, who saw the presentation and who have pledged support. Earlier today, Ben Rabidoux, another who shares Franklin's views emailed Investor Voice sharing the above Twitter links from my account as he thinks I am trying to hide them. I have nothing to hide. I will not be intimidated. It's funny how Franklin sent the same links. I am a CFP, a CLU, I am insurance and mortgage licensed. I work with products and services of multiple providers, I am not exclusive to syndicated mortgages. David Franklin knows that many people are followers and will rather blindly follow his bandwagon than take the time to research to find the truth. This only allows him to continue to share his side. The presentation I offered, includes attached documents made up of Court documents and records and other information from credible sources. These documents don't change with the fact that I am an agent. Franklin is upset because some of the factual records make him look bad and he thinks by attacking me and trying to convince people that I am not credible will work in his favour. Why not take the time and review the presentation and review the supporting documents that were not written by me and be aware. Should you not know of all the facts that affect you? As you can see, although David Franklin is a lawyer, he is not a professional. He is a bully. A true professional lawyer does not act like him trying to confuse people and trying to attack the credibility of someone trying to share factual documents. A professional lawyer doesn't send angry and aggressive emails throughout the day on a Sunday. Many investors are upset and for some reason they choose to see the negative in everything. A bunch of you will fall for Franklin's plan of damaging my credibility and will not look at the presentation. That is what he wants. Don't let him get his way. You deserve to be informed. No one in your corner should keep you ignorant of information. Please contact investorvoice@hotmail.com to request the presentation. Thank You
    • Defrauded by fortress | 12 Dec 2018, 09:31 PM Agree 0
      You’re doing a great job of making yourself look bad. Believe me, the truth has been discovered and I’m willing to bet you are a part of the problem. Not the solution. The information is out there and it seems like you are desperately trying to save your own skin.
  • David Franklin | 12 Dec 2018, 04:54 PM Agree 0
    Clarence you have not responded for the second time to advise who from Fortress told you about the 35% fee and when you were told. Why won't you answer these questions?
  • Skeptic | 12 Dec 2018, 06:03 PM Agree 1
    Clarence, you're clearly confused here. No one is trying to "intimidate" you. What's happening here is that people are questioning your motives...and they have every right to. You've enriched yourself off the sale of this "product", and you were clearly at one point quite loyal to the people at Fortress and some of the major wholesalers. And yet you've presented yourself as a neutral party without disclosing any of this. Can you fault people for questioning whether you're really doing this out of the goodness of your heart?

    The RCMP doesn't act on a whim, and courts don't tend to grant search warrants without compelling evidence to justify the enormous reputational hit that granting such a warrant entails. Perhaps you should wrestle with the possibility that maybe you don't know what you think you know.
    • David Franklin | 12 Dec 2018, 07:01 PM Agree 0
      Well stated.
    • Investor Voice | 12 Dec 2018, 07:04 PM Agree 0
      As mentioned earlier, I work with multiple products and services from various providers, including banks and insurance companies. My priority is my clients, not the various companies that provide their products. I get invited to events with insurance companies and other investment companies as well. That doesn't mean I am on the Insurance and investment company's side. I was at a mortgage broker trade show in my picture with the booth, I was doing a site visit at Colliers Centre and Fortress and Ellis Don provided me a vest, goggles, construction hat and boots to wear while walking the site for safety. I was invited to Fortress Awards dinner with hundreds of agents, developers, lawyers, real estate people etc. Are all of them also on Fortress' side for being at the event? These are not current but from a few years ago, before many of the issues that plague Fortress now. If what you are saying is true, I would have to be loyal to Manulife, Sunlife, Desjardins, TD, RBC, etc. I have not presented myself as anything. I just was sharing info supported by data that was not created by me. As I mentioned earlier, Investor Voice was created to take on FAAN and FSCO. If you see my correspondence with them that had nothing to do with Fortress, you will see my intentions. It has nothing to do with what I know, while working on the situation with FAAN and FSCO, I came across other info that I felt needed to be shared. I was not concerned with the info impacting Fortress, I was concerned of the info impacting investors and the lack of info that could help them. When you say, I enriched myself, is that because my rented tux in the picture. If an Advisor promotes any other investment and it doesn't work out through no fault of the Advisor, will they be treated the same way?
    • Investor Voice | 12 Dec 2018, 07:40 PM Agree 0
      I believe the warrant request mentions that Franklin went to the RCMP in Nov 2016 and that is when they began the investigation. The RCMP and Courts didn't have to worry about a reputational hit with the warrant because there had been over 50 articles from Globe in Mail, Maclean's, CBC, Financial Post, Reuters, etc. in the last 2 years supporting an inquiry. They would have had more of a reputational hit had they not done it. The extensive coverage would have supported the cause.
  • Investor Voice | 12 Dec 2018, 06:28 PM Agree 0
    I am not sharing my thoughts alone...they are backed by documents including court records. I am asking people to read them. There is nothing wrong with being given information. Many here take information from Franklin without questioning his motives. Most of the supporting information he shares are articles quoting him. People can't seem to see that most of his actions add more risk to the investors. Doing what I am doing does not help me at all, if anything, it adds risk to me. After you read the documents in the presentation and the chronological order of events with Support, you should then decide what my motives are.

    I am not going to respond to Franklin as he has a way of twisting things. My priority is not him, I am not getting into an argument that will lead no where. My priority is investors, regardless, if they believe it or not.
  • David Franklin | 12 Dec 2018, 06:59 PM Agree 0
    Clarence now that you mentioned Ben Rabidoux by name, the following are links to story about how Fortress efforts to silence this critic failed. Fortress uses the threat of defamation lawsuits, which are expensive to the critic trying to tell the truth about Fortress mortgages, so the public could not be better informed about their high-risk mortgages that were unsuitable for the average investor and avoid them. Perhaps if there had been more in the media, fewer people would have lost money. Ben has the Court of Appeal order for his costs and Fortress and its principal shareholders, Jawad Rathore and Vince Petrozza hav failed to pay him. How can anyone trust them since they won’t pay their court ordered debt?
    By the way their lawyers in their defamation suit against me, obtained a court order removing them as their lawyer for failing to pay their fees.
    Further, you have posted your email address so forum readers can contact you for your presentation. Have you reciprocated with the investors in your group by telling them to read these comments or are you concerned that by reading this information they will leave your group?
    https://www.macleans.ca/economy/business/how-a-real-estate-developers-efforts-to-silence-a-critic-failed/
    https://www.mccarthy.ca/en/insights/blogs/cyberlex/libel-tweet-ontario-court-appeal-upholds-dismissal-twitter-libel-claim-under-anti-slapp-legislation
    • Investor Voice | 13 Dec 2018, 11:08 AM Agree 0
      I am not concerned of people joining or leaving any group...just that they know the information. I shared over 50 articles in my presentation, 99% of them against Fortress and syndicated mortgages...I am not sharing one side and you should stop making more false claims like those. I think people should read everything. I feel court documents are more credible than newspaper articles. Also, in Canada, every individual and business has the right to defend themselves from any allegation and Courts don't grant injunction orders blocking people from speech unless it is proven that the speech is untrue and damaging to the individual and/or business. With Anti-Slapp it no longer matters to the court's if the information is factual or not or if it causes harm, as long as it can be construed that it is in the public interest. I think facts are in the public interest. Untrue statements can never be in the public interest.
    • Investor Voice | 13 Dec 2018, 11:13 AM Agree 0
      The presentation shared the court records of the Anti-Slapp decision between Fortress and Rabidoux so again, I am not leaving things out to sway opinion. No point arguing with you. Hopefully, people will not choose to be ignorant and make claims without fact.
  • Investor Voice | 12 Dec 2018, 07:26 PM Agree 0
    One more thing...many of the agents I am aware of are personally invested or, as I, have family members invested. If they were really trying to intentionally scam people, why would they put themselves and their families in it. Things worked well for a while, there were some delays and extensions, which were common risks, but only after extensive negative attention from the media, constant attack from opponents, proposed class actions that were not successful, FSCO involvement...including blocking funding for almost a year on projects that need ongoing funding, things got to how it is today. All this impacts banks wanting to fund, developers no longer will pay a price on a sale outside of a distress price, trades place liens out of concerns of payment, etc. There is no way anyone can deny that there are consequences to these things unless if they are not aware of them.
    • | 13 Dec 2018, 12:15 PM Agree 0
      Wow! Are you ever delusional! Save your breath crook. Many of us here have a ton of experience dealing with the fortress crooks and brokers such as yourself. Nothing you can say here is going to excuse you or anyone else involved in peddling this scam. He excuses you provide for things not working out with Fortess are laughable. As are you.
  • | 12 Dec 2018, 08:54 PM Agree 0
    Clarence Godinho you worked for FDS who worked directly for the Con artists at Fortress. You are guilty like the rest of the scam artists. Your greed will catch up to all of you, many lives have been ruined over this. Sleep well
    • Investor Voice | 13 Dec 2018, 11:17 AM Agree 0
      I was not a employee of FDS. Just how I can access products of Manulife and Sunlife among others, without being an employee of theirs, I could access the products provided by FDS. My mortgage license was held there and besides syndicated mortgages, I also arranged residential mortgages. I don't know why I have to justify myself when all I am trying to do is inform people with supporting documents from credible sources that I didn't create.
  • Sad State what Fortress did | 13 Dec 2018, 10:22 AM Agree 0
    Jawad and Vince have cleaned up making millions of dollars, driving Ferrari's, renting private planes, buying homes, court side tickets, and getting condo units at cost price and flipping for profits....all the while the projects were failing.

    Jawad and Vince were the masterminds, and they set-up the crony boiler rooms via FDS, FNM and FMP.

    Was FDS, FNM and FMP aware of their antics? 100% (The directors that is).

    They directors are FDS,FNM and FMP turned that blind eye, because they were making money hand over fist.

    Were 99.99% of the agents smart enough to recognize the fraud Fortress was pulling? Mostly likely not, as they didn't think it was fraud, they just thought the Fortress product was just a "riskier" real estate investments.

    99.99% of the agents also don't understand development finance, so whatever Jawad sold them they believed....

    Did they agents know about but the problem projects? 100%...

    But like good sheep when Jawad needed more money for the project holes, the sales forces found more investors, because Jawad would increase the commissions.

  • David Franklin | 13 Dec 2018, 01:03 PM Agree 0
    Clarence, I received a letter, dated July 10, 2017, from Jeremy Devereux of Norton Rose Fulbright as counsel to Fortress Real Developments Inc. In case you didnot know, Jawad Rathore is the 80% shareholder and Vince Petrozza the 20% shareholder and they are officers and directors of this company. Included in this letter are the following statements:

    “In public statements you have repeatedly asserted that Fortress receives a fee of 35% of the funds raised for development projects in which Fortress is involved, and that such a fee is set out in Development Consultant Agreements.”
    “When Fortress is retained as a consultant by a developer, Fortress is typically entitled to a fee for its consulting services and its costs in the range of about 2-4% of total project costs. In addition, the amounts payable by the developer for broker and agent commissions, mortgage administration fees and referral fees — none of which are payable to Fortress — are typically in the range of 18% or more of the funds raised.”

    By doing the math, Fortress is receiving 35% less the 18% which leaves 17%. If the 18% paid out is higher, then Fortress receives a lower amount than 17%.

    Fortress stated publicly that it raised $920 million so the 35% fee is $322 million and 17% is $156.4 million.

    Why can’t Fortress cover the trustee and legal fees that investors are paying from the money it made? Why is it increasing the losses of the investors?

    How do you feel knowing this that you had your family members invest in these mortgages and you profited off them? How do you think the agents who invested themselves and had family members invest feel now? How do their family members feel?

    Were you and the other agents aware that in addition to the 35% that two years interest at 8%, 16% was also deducted, so that the developer only received 49% of investor funds? Also, were you and the other agents aware that the interest payments received by investors came from their own capital? Investors I spoke with thought that the interest payments were being paid from the developers own funds and not from their own money. Why did these investors think this? Why didn’t the agents tell them this?

    The development agreements set out that $5,000 of investor funds was to be paid to a charity, So, when Fortress claimed it was a philanthropist, it was the investors who were really the philanthropists.

    Clarence, how many agents knew about the 35% fee?
    • Scammed investor | 13 Dec 2018, 02:15 PM Agree 0
      Fortress turned out to be a house of cards. As a result of their misrepresentations at the special events put on for public consumption, and by the outright lies of their agent, we were induced to invest in project(s) that we otherwise would not have contemplated; notwithstanding that FSCO, the regulating body, was also reckless for not safeguarding investors.
  • El Bastardo | 13 Dec 2018, 01:24 PM Agree 0
    This is funny. Clarence markets himself as the "Cash Flow Tutor" but yet made recommendations to invest in products with very lumpy cash flows (if any)....on top of it being illiquid and very high risk. Great cash flow stream there! It's sad that the barriers to entry to sell this stuff were so sooooo low....because these hacks piled a lot of investors into an unsuitable product for the most part. Had it been with another regulatory body, there would have been a more stringent suitability tests. These were simply unsuitable for many investors...how many investors were given the recommendation to pile a good chunk(if not all) of their net liquid assets into this crap? From clowns that understand/understood nothing about securities nor constructing portfolios? This is why you have situations like the Reuters story of the 70 year old man...no liquidity, no income, and no time horizon....he's left with nada. Is this the kind of stuff that makes you a formidable fiduciary? I don't think so.

    The dumb brokers/agents that sold this shit always made meaningless comparisons to equity indices and always pitched that it lacked volatility...well duh...no secondary market -> no pricing-> no vol...and many times comparisons were made to the SPTSX...where they lacked the most basic understanding of the underlying sectors. Stupid idiots. Interviewed a couple of these brokers and they were complete door knobs. What kind of the investment advice did you get from a crowd that has the only challenge of 'checking off the boxes'? Where they don't consider anything in the context of an entire portfolio? Where in some instances the senior lenders required a higher return than the junior ranking loans? Does that make sense to anyone? More risk for less compensation?

    Imagine if this crap traded on a secondary market. Investors got endless and fruitless stories about the difficulties of development...from operators that hadn't had single day of experience in building stuff. Extraordinarily poor execution, high fees, and embellished returns/performance is what you got...with those dumb banner ads of exits.
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