e-3060 Economy and finance
Petition to the House of Commons
Whereas:
From 2009 to 2018, Fortress Real Developments and its affiliate brokerages raised $920 million in Syndicated Mortgage Investments (SMIs). The SMIs were promoted to Canadians as safe, 8% interest, secured principal, and registered eligible;
The Financial Services Commission of Ontario received numerous complaints from investors and warnings from industry experts regarding the high risk of Fortress SMIs since 2011, but did not act until February 2018;
In April 2018, the RCMP raided Fortress and its affiliate brokerages revealing to investors that 50% of their principal was deducted towards commissions, fees and their own interest. Property values were grossly inflated, resulting in ineligibility for registered funds;
Thousands of hardworking Canadians, including seniors, have lost their life savings. The victims and families are suffering from extreme financial and emotional hardship due to the hundreds of millions of dollars that have been confirmed as a loss to the investors; and
The RCMP has yet to lay charges on what is believed to be the largest mortgage fraud in Canadian history.
We, the undersigned, citizens and residents of Canada, call upon the House of Commons to:
1. support the launch of an independent public forensic inquiry to investigate the financial records and assets of Fortress and principals, its brokerages, executives and trustees, including Sorrenti Law;
2. ensure that the RCMP Integrated Market Enforcement Teams has the resources and funds to continue their investigation;
3. review the Standing Up for White Collar Crime Act, and increase the current punishment and imprisonment if the fraud exceeds one million dollars; and
4. mandate communication across all financial Canadian regulators to reduce loopholes and protect investors.
Whereas:
From 2009 to 2018, Fortress Real Developments and its affiliate brokerages raised $920 million in Syndicated Mortgage Investments (SMIs). The SMIs were promoted to Canadians as safe, 8% interest, secured principal, and registered eligible;
The Financial Services Commission of Ontario received numerous complaints from investors and warnings from industry experts regarding the high risk of Fortress SMIs since 2011, but did not act until February 2018;
In April 2018, the RCMP raided Fortress and its affiliate brokerages revealing to investors that 50% of their principal was deducted towards commissions, fees and their own interest. Property values were grossly inflated, resulting in ineligibility for registered funds;
Thousands of hardworking Canadians, including seniors, have lost their life savings. The victims and families are suffering from extreme financial and emotional hardship due to the hundreds of millions of dollars that have been confirmed as a loss to the investors; and
The RCMP has yet to lay charges on what is believed to be the largest mortgage fraud in Canadian history.
We, the undersigned, citizens and residents of Canada, call upon the House of Commons to:
1. support the launch of an independent public forensic inquiry to investigate the financial records and assets of Fortress and principals, its brokerages, executives and trustees, including Sorrenti Law;
2. ensure that the RCMP Integrated Market Enforcement Teams has the resources and funds to continue their investigation;
3. review the Standing Up for White Collar Crime Act, and increase the current punishment and imprisonment if the fraud exceeds one million dollars; and
4. mandate communication across all financial Canadian regulators to reduce loopholes and protect investors.