The statements below are Sotos LLP’s account of this case. They reflect allegations or the firm’s position and have not been determined by a court unless a settlement or judgment is noted.
Latest update
All five actions have now been certified against the Fortress Defendants by court order made on April 21, 2026. We will now be moving forward with motions for default judgment against Fortress.The court also certified the Orchard action against Jawad Rathore and Vincenzo Petrozza, the Fortress principals. This was the only action in which Rathore and Petrozza were named as defendants. The claims against them in the other actions were struck out many years ago.The Progress action is also certified against the developer, Empire Pace (1088 Progress). However, the claim against the valuator [name withheld] in the Progress action was dismissed. That decision is being appealed. The court also dismissed the action against the valuators Grant Edwardh Appraisers and Consultants Ltd. and [name withheld] in the Harmony Simcoe action. That decision is also being appealed. The appeals from the decisions dismissing the claims against the valuators will not be heard before early 2027. The Reasons for Decision dated April 21, 2026 are posted under the Documents Tab. The Plaintiffs in the Progress and Harmony Simcoe actions are moving for certification of these actions against the appraisers. Certification is also sought against the developer in Progress. The certification motions are being argued on February 24, 25, 2026 by videoconference. At the same time certification will be sought against the Fortress Defendants in all five actions. The Fortress Defendants have already been noted in default and are not defending the proceeding.
Source: Sotos LLP
About This Case
The Claim: We have joined forces with MSTW Professional Corporation in prosecuting five proposed class actions relating to syndicated mortgage loans (SMLs) promoted by Fortress Real Developments Inc. and Fortress Real Capital Inc. (together “Fortress”). The actions relate to the SMLs registered on five different real estate developments:
Collier Centre – Barrie, ON (only with respect to the 2012 SML)
Progress Manors Ten88 – Toronto, ON Sutton/The Link – Burlington, ON Harmony Village Lake Simcoe/The Kemp – Barrie, ON Orchard Calgary – Calgary, AB The claims are brought against the Fortress companies, the mortgage brokers who sold the SMLs to class members, including Building & Development Mortgages Canada Inc. (“BDMC”), property valuators, and a lawyer, Derek Sorrenti and his law firm, who provided legal advice about the SMLs, and also acted as a trustee and mortgage administrator for some of the SMLs.
In each action, the plaintiffs allege, among other things, that the Investors were misled about the actual value of the property on which the SML would be registered; the true risks involved in participation in the SMLs; how the mortgage proceeds would be used by the developer and Fortress; and, that the SMLs would qualify to be held in registered accounts, when they did not.
Source: Sotos LLP
Who May Be Eligible
All persons in Canada who invested prior to January 30, 2015 in a syndicated mortgage in respect of the Collier Project No. 1, registered against title to lands located at 90 Collier Street and 55 Mulcaster Street, Barrie, Ontario, as Instrument SC1005953 (Collier Centre). All persons in Canada who invested in a syndicated mortgage in respect of the Progress/Ten88 Project, registered against title to lands located at 1088 Progress Avenue in Toronto, Ontario as Instrument AT3101004 or AT3127137 (Progress Ten88). All persons in Canada who invested in either of the syndicated mortgages in respect of the Sutton/The Link Project, registered against title to lands located at 5210, 5218, 5226, 5236 Dundas Street and 2500 Burloak Drive in Burlington, Ontario as Instrument HR1062915, HR1163239, or Instrument No. HR117424 (Sutton/The Link). All persons in Canada who invested in a syndicated mortgage in respect of the Harmony Village Simcoe Project/The Kemp, registered against title to lands located at 51, 53, 55, and 75 Bradford Street, Barrie, Ontario as Instrument SC983678 (Harmony Village Lake Simcoe/The Kemp). All persons in Canada who invested in a syndicated mortgage in respect of the Orchard Project registered against title to lands located at 602, 606, 610, 620, 624, 626 and 628th, Avenue S.E., in Calgary, Alberta, registered on title as 141 112 373 (Orchard Calgary).
Source: Sotos LLP
Disclaimer: This information is sourced from Sotos LLP. It is provided for general information only and does not constitute legal advice. Always verify details with the original source before taking any action.
Legal disclaimer: Information on this page is general in nature and does not constitute legal advice. ClaimBar tracks class action settlements and provides updates. Always seek professional legal advice for your specific circumstances.
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