Developers found guilty of defrauding investors out of retirement savings in Barrie, Winnipeg
Two Men Found Guilty of Fraud Over $5,000 in Misleading Investors
In a recent judgment delivered by Justice Daniel Moore in a Toronto courtroom, two men, Jawad Rathore and Vince Petrozza, were found guilty of fraud over $5,000. The charges stemmed from their involvement in misleading investors on two never-realized projects in Barrie, Ont., and Winnipeg.
Described as “smart, sophisticated businessmen” by Justice Moore, Rathore and Petrozza were accused of intentionally misleading investors about the value of their secured interest in order to entice them into investing. Despite their hopes for success in the projects, it was determined that they knew they were putting investor funds at risk.
Investors who used the pair’s company, Fortress Real Developments, to invest in the mixed-use Collier Centre in Barrie, Ont., and the condo tower SkyCity in Winnipeg, ended up losing tens of thousands of dollars. The charges specifically related to syndicated mortgages, where multiple investors provide loans to cover initial development costs, with the land serving as collateral.
One such investor, Linda Bilorosek from Burlington, Ont., shared her heartbreaking story of investing her entire retirement savings of $63,000 in the SkyCity project, only to lose about $56,000. As a single parent, Bilorosek expressed her devastation over the loss but also expressed some satisfaction in seeing justice served.
While the verdict won’t bring back the lost funds, Bilorosek emphasized the importance of holding individuals like Rathore and Petrozza accountable for their actions. The outcome of the trial serves as a small form of justice for those who fell victim to the fraudulent schemes.
As the legal proceedings continue, more details are expected to emerge regarding the extent of the fraud and its impact on the investors involved. The case serves as a reminder of the importance of due diligence and caution when considering investment opportunities, especially in high-risk ventures like real estate development.
Stay tuned for further updates on this developing story.
