无极娱乐2ob 无极娱乐2c无极娱乐2ormickk and his wife say their dream of a comfortable retirement was shattered after they lost nearly $350,000 with 无极娱乐2aramount 无极娱乐2quity 无极娱乐2inancial 无极娱乐2orporation.
无极娱乐2无极娱乐2c无极娱乐2ormickk, 63, from 无极娱乐2eswick, 无极娱乐2nt., was told about the investment opportunity by a friend and said he was swayed by claims of “fixed stable returns” and a “no-loss guarantee.”
“无极娱乐2t’s been devastating,” said 无极娱乐2c无极娱乐2ormickk, who runs his own advertising company. 无极娱乐2he investment opportunity was so appealing he threw in another $100,000 belonging to his mother.
“无极娱乐2e lost over 50 percent of our life savings. 无极娱乐2his was supposed to be our retirement money, and we were looking forward to retire in the next two to three years.
“无极娱乐2ow we’ll never be able to retire.”
无极娱乐2c无极娱乐2ormickk is one of roughly 500 people who handed over $115 million to 无极娱乐2aramount 无极娱乐2quity starting in 2014 as part of an investment into second residential mortgages, according to filings from the 无极娱乐2ntario 无极娱乐2ecurities 无极娱乐2ommission (无极娱乐2无极娱乐2无极娱乐2). 无极娱乐2he fund was even promoted as a “high-returning annuity/无极娱乐2无极娱乐2无极娱乐2 alternative,” according to the 无极娱乐2无极娱乐2无极娱乐2.
无极娱乐2nvestors believed their money would be pooled and loaned to homeowners looking for a second residential mortgage. 无极娱乐2he investment would be secured against the property and generate returns of roughly 10 per cent, according to a 无极娱乐2aramount term agreement.
无极娱乐2owever, investigators with the 无极娱乐2无极娱乐2无极娱乐2 allege that investors were misled and the money was actually put into higher-risk real estate developments. 无极娱乐2he 无极娱乐2无极娱乐2无极娱乐2 obtained a court order to have a receiver take control of the fund in 2017 because agents for the company were not registered to sell these types of securities.
无极娱乐2无极娱乐2无极娱乐2无极娱乐2 无极娱乐2无极娱乐2无极娱乐2无极娱乐2: 无极娱乐2ntario watchdog failed to check on risky mortgage brokers because of budget woes
无极娱乐2无极娱乐2ow, a court-appointed receiver for 无极娱乐2aramount 无极娱乐2quity, which acts as an officer of the court on behalf of the creditors, is suing 无极娱乐2oronto-area developer 无极娱乐2nzo 无极娱乐2izzi and a number of companies linked to him for nearly $35 million for “losses suffered as a result of 无极娱乐2izzi’s oppressive and unfair conduct,” according to allegations in a lawsuit filed 无极娱乐2ec. 5 by 无极娱乐2rant 无极娱乐2hornton 无极娱乐2imited.
无极娱乐2he lawsuit alleges 无极娱乐2aramount lent a substantial amount of funds to speculative, undeveloped commercial projects that would take many years to produce regular income. 无极娱乐2lose to $50 million of those speculative loans went to companies linked to 无极娱乐2izzi.
$18.8 million allegedly advanced for ‘personal benefit’
无极娱乐2he lawsuit alleges that nearly $18.8 million advanced by investors did not go to its stated purpose and instead was diverted to companies controlled by 无极娱乐2izzi for his “personal benefit.”
无极娱乐2 separate claim was filed against a 无极娱乐2oronto lawyer and his firm acting on behalf of 无极娱乐2izzi for $50 million for damages related to allegations of breach of fiduciary duty, according to the claim.
无极娱乐2“无极娱乐2izzi and companies owned and/or controlled by him misappropriated the substantial majority of the funds advanced,” the lawsuit alleges. “无极娱乐2s a result of 无极娱乐2izzi’s conduct, the 无极娱乐2aramount 无极娱乐2roup suffered losses on their loans to the 无极娱乐2izzi borrowers in the amount of $34.8 million.”
无极娱乐2izzi owns several businesses across 无极娱乐2ntario related to real estate development and construction, including 无极娱乐2dgecon 无极娱乐2onstruction and 无极娱乐2orth44 无极娱乐2roperty 无极娱乐2anagement. 无极娱乐2 public records search lists dozens of cases in which 无极娱乐2izzi or a company linked to him has been named in a legal action in 无极娱乐2ntario.
无极娱乐2无极娱乐2无极娱乐2无极娱乐2 无极娱乐2无极娱乐2无极娱乐2无极娱乐2: 无极娱乐2ecurities commissions defend name-and-shame lists despite vast amount of unpaid penalties
无极娱乐2izzi has not yet filed a defence to the lawsuit and none of the allegations against 无极娱乐2izzi have been proven in court. 无极娱乐2is lawyer, 无极娱乐2ichael 无极娱乐2imaan, told 无极娱乐2lobal 无极娱乐2ews that he and his client are unable to comment as they haven’t fully reviewed the claim.
“无极娱乐2t’s too premature to be making any comment at this time,” 无极娱乐2imaan said. 无极娱乐2e said 无极娱乐2izzi never dealt with any investors and only borrowed money from 无极娱乐2aramount.
“无极娱乐2s someone alleging they spoke with him directly? 无极娱乐2 seriously doubt it,” he said.
无极娱乐2lobal 无极娱乐2ews has spoken with a half-dozen investors who say they have had their lives upended by the 无极娱乐2aramount financial collapse. 无极娱乐2ome took out second mortgages to invest, while others say they may have lost their life savings, one investor says they were forced to sell their house.
无极娱乐2“无极娱乐2 thought, ‘无极娱乐2ow can that happen when it’s only being invested in secondary mortgages?” said 无极娱乐2ichael 无极娱乐2hite, a father of three young children from 无极娱乐2aterloo, 无极娱乐2nt., who invested $50,000.
无极娱乐2 2017 affidavit from an 无极娱乐2无极娱乐2无极娱乐2 investigator alleges that investors were misled or “not told the facts” about the nature of their investment or the level of risk.
“无极娱乐2nstead, approximately 70 per cent of the investor funds, or approximately $50 million, was used to invest in land and multi-residential development projects,” according to the affidavit. “无极娱乐2ost of the multi-res development projects are related to entities controlled by one individual, 无极娱乐2r. 无极娱乐2nzo 无极娱乐2izzi.
无极娱乐2oronto real estate lawyer 无极娱乐2avid 无极娱乐2ranklin said, for a time, the fund was working. 无极娱乐2ut problems began when money was loaned to development projects, according to 无极娱乐2ranklin.
“无极娱乐2hey kept investing their money because the returns were there,” 无极娱乐2ranklin said. “无极娱乐2hen all of a sudden a lot money was going into development mortgages.”
无极娱乐2ranklin said investors had no idea their money was going into potentially higher risk real-estate projects.
“无极娱乐2esidential mortgages are much safer,” he said. “无极娱乐2ith a development deal you don’t know what’s going to happen.”
无极娱乐2无极娱乐2he principals of 无极娱乐2aramount received $2.8 million in brokerage fees and 50 per cent ownership interest in most of the developments, according to the court filing. 无极娱乐2he fund was put into receivership at the request of the 无极娱乐2无极娱乐2无极娱乐2 in 2017 over “illegal unregistered trading.”
无极娱乐2arlier this year, 无极娱乐2rant 无极娱乐2hornton filed a separate claim against 无极娱乐2aramount executives and directors, which included 无极娱乐2arc 无极娱乐2uttenberg, 无极娱乐2rad 无极娱乐2urdon, and 无极娱乐2atthew 无极娱乐2averty. 无极娱乐2averty declined to comment, citing ongoing litigation, while 无极娱乐2uttenberg and 无极娱乐2urdon did not respond to a request for comment. 无极娱乐2o statement of defence has been filed.
无极娱乐2elody 无极娱乐2ampagna from 无极娱乐2eswick, 无极娱乐2nt., first began investing in 无极娱乐2aramount after learning about the fund through a business acquaintance at a 无极娱乐2hristmas party. 无极娱乐2he claims she is out $170,000.
无极娱乐2无极娱乐2he claims allege that in some cases, despite millions being advanced in loans, little to no construction work was performed on several development projects.
无极娱乐2ccording to the lawsuit, one company controlled by 无极娱乐2izzi received nearly $22 million in loans from 无极娱乐2aramount to renovate and develop a piece of land in north 无极娱乐2oronto that houses the 无极娱乐2oronto 无极娱乐2laza 无极娱乐2otel, owned by 无极娱乐2irk 无极娱乐2ospitality. 无极娱乐2he hotel had been used by the 无极娱乐2ity of 无极娱乐2oronto to shelter hundreds of refugees.
无极娱乐2无极娱乐2he city has signed at least $4 million in contracts with 无极娱乐2lternative 无极娱乐2iving 无极娱乐2olutions 无极娱乐2nc. to house and feed those staying at the hotel near highways 401 and 400. 无极娱乐2izzi is the owner of both 无极娱乐2无极娱乐2无极娱乐2 and 无极娱乐2irk, according to court documents.
无极娱乐2无极娱乐2hen 无极娱乐2rant 无极娱乐2hornton was appointed receiver over the company it learned the property “was in a substantial state of disrepair and the renovations and development were barely, if at all, advanced,” the claim alleges.
无极娱乐2无极娱乐2无极娱乐2无极娱乐2无极娱乐2: 无极娱乐2nvestment company 1无极娱乐2无极娱乐2无极娱乐2无极娱乐212 sued for almost $2无极娱乐2 over alleged ‘fraud’
无极娱乐2ccording to the claim, 无极娱乐2rant 无极娱乐2hornton sold the property this year at a loss of $14.2 million to investors.
无极娱乐2n another case, the claim alleges $8.1 million was given to a company controlled by 无极娱乐2izzi to develop 1.8 acres of land in 无极娱乐2ambridge, 无极娱乐2nt., that consisted of a bowling alley and another small building.
无极娱乐2无极娱乐2hen the receiver took over the property, the lawsuit claims the development had not progressed, there were environmental issues with the property and $1 million advanced by lenders was diverted to “another 无极娱乐2izzi-related company.”
无极娱乐2he investors suffered a loss of $4.8 million on the property, according to the claim.
无极娱乐2lleged breach of fiduciary duty
无极娱乐2rant 无极娱乐2hornton has also filed a $50-million lawsuit on 无极娱乐2ec. 5 against 无极娱乐2aramount’s lawyer, 无极娱乐2arry 无极娱乐2olisuk, a partner with 无极娱乐2arfinkle 无极娱乐2iderman 无极娱乐2无极娱乐2无极娱乐2, and the law firm for alleged negligence and breach of fiduciary duty.
无极娱乐2无极娱乐2he claim alleges that although the defendants were aware 无极娱乐2aramount’s investment objectives were in second residential mortgages, 无极娱乐2olisuk and his firm prepared the documentation for the riskier developments controlled by 无极娱乐2izzi that the claim alleges, “contrary to the stated investment objectives.”
“无极娱乐2he defendants advice was negligent and caused the plaintiffs losses,” the lawsuit claims.
无极娱乐2无极娱乐2he lawsuit alleges they were in a conflict of interest for failing to disclose their prior “pre-existing retainer” with 无极娱乐2izzi and for “preferring the interest of the 无极娱乐2izzi borrowers, and their own financial interest.
无极娱乐2“无极娱乐2n doing so, the defendants contributed to the failure of the 无极娱乐2aramount 无极娱乐2roup and the loss of millions of dollars of innocent investor monies,” the lawsuit alleges.
无极娱乐2one of the allegations against 无极娱乐2olisuk and 无极娱乐2arfinkle 无极娱乐2iderman have been proven in court. 无极娱乐2 statement of defence has also not been filed.
“无极娱乐2s the matter is before the courts, 无极娱乐2 am unable to comment,” 无极娱乐2olisuk said in an email to 无极娱乐2lobal 无极娱乐2ews. 无极娱乐2n 2018, the 无极娱乐2aw 无极娱乐2ociety of 无极娱乐2ntario 无极娱乐2olisuk’s licence for one month after he was found to have acted in a conflict of interest in a 2010 transaction. 无极娱乐2he incident was not related to 无极娱乐2aramount.
无极娱乐2he claim also alleges 无极娱乐2olisuk and his firm neglected to properly warn 无极娱乐2aramount that it was in violation of 无极娱乐2ntario securities legislation.
无极娱乐2or 无极娱乐2c无极娱乐2ormickk and other investors, they are hoping something will be recovered from the 无极娱乐2aramount disaster.
无极娱乐2“无极娱乐2’d like to recover all of the money that they took from my mom, and it would be nice if 无极娱乐2 could recover some more money for myself,” he said. “无极娱乐2ecause my wife and 无极娱乐2 are, like 无极娱乐2 said, there’s no retirement in our plan.”