RCMP raid SkyCity Centre developer’s offices in Toronto in fraud investigation
RCMP conducts six searches in Toronto area in syndicated mortgages probe
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Hey there, time traveller!
This article was published 14/04/2018 (2726 days ago), so information in it may no longer be current.
The Toronto-area developer behind a proposed mega-development on Graham Avenue was raided by the RCMP Friday in a syndicated mortgage fraud investigation.
Officers were seen removing boxes of material from the Richmond Hill, Ont. office of Fortress Real Developments Inc.
Fortress is the developer of what it called the tallest residential tower in downtown Winnipeg, the $200-million, 45-storey SkyCity Centre condo project and the adjacent $20-million parkade-retail come lex on the former St. Regis Hotel property on Smith Street.
The RCMP says it has carried out six search warrants in the Greater Toronto Area related to an investigation into syndicated mortgage frauds.
RCMP Sergeant Penny Hermann says the searches were carried out Friday morning by its Integrated Market Enforcement Team, but would not provide further details or confirm which companies were targeted.
Fortress could not be immediately reached for comment.
In February, the Ontario’s securities regulator issued $1.1 million in fines against four parties that were involved with syndicated mortgages for real estate development projects in which Fortress was a developer or development consultant.
And in March, Canadian securities regulators in proposed regulatory changes to address the associated risks of investing in syndicated mortgages — private mortgages that are sold to a group of investors to finance real estate developments.
The Canadian Securities Administrators proposed several changes, including heightened disclosure from issuers of syndicated mortgages. Some companies or individuals offering these investment opportunities may advertise these products as fully secured or guaranteed as high return.
— Staff / The Canadian Press