The Globe and Mail is reporting that the OPP have started an investigation into fraud allegations involving the use of syndicated mortgage investment funds from the Tier 1 group of companies and that the OPP’s anti-rackets branch is investigating a former condo project at 28 McMurray St W. in Bracebridge, which was one of the developments funded by the syndicated mortgage loans.
According to the Globe article, this comes a year after the Financial Services Commission of Ontario (FSCO) suspended licenses of two mortgage brokers – the Tier 1 Mortgage Corp and the First Commonwealth Mortgage Corp, during an investigation into 16 syndicated mortgage investment pools the firms were promoting to investors.
According to the article, the pools raised $119 million via 1,500 investors to fund a development planning group in order to construct student residences and condominiums.
The article states that accounting firm Grant Thornton has been appointed Trustee for mortgage investors. The article also states the OPP have sent a letter to investors in the McMurray project in an attempt to identify victims and witnesses who might speak with police.
Work stopped on the McMurray project referred to by the article late last year when the property, then owned by a different owner than the current one, went into receivership.
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