Receiver seeking court order in latest step to recover $78-million that was pumped into Paramount by about 500 retail investors
Grant Thornton Ltd., the receiver, is seeking a court order that $16.7-million in investor funds – which allegedly flowed from Paramount to real estate projects backed by developer Enzo Mizzi and then elsewhere – were fraudulently moved out of the reach of creditors.
Paramount, which marketed itself to investors as offering “predictable, steady returns” and as “high-returning annuity/GIC alternative,” was supposed to deploy funds into second mortgages, with a maximum loan-to-value ratio of 85 per cent, on residential homes. The company, which was founded by Marc Ruttenberg, shifted away from that core business, however, and funnelled nearly $50-million into higher-risk mortgages on land – sometimes undeveloped – slated for multiunit residential buildings.
Alan Merskey, a partner at Cassels Brock & Blackwell LLP with expertise in insolvency and asset recovery, declined to comment on the specifics of this case because it is before the courts, but said there are a few features of such a claim that make them distinct. They can be brought “against any person who was a ‘party’ or ‘privy’ to the transfer” of funds, which can potentially place many people on the hook for paying them back, Mr. Merskey said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ALGO is all pumped up for 2023 as Algorand crosses this paramount milestoneAlgorand kicked off 2023 on a positive note with one billion transactions on its network Decentralized projects helped ALGO reach its monumental landmark Algorand [ALGO] is off to a great start in 2023. The network just crossed the one billion transactions milestone, which is a big deal as far as utility is concerned. But what […]
Read more »
Players around NFL say Damar Hamlin's injury wasn't Tee Higgins' faultTeammates and other NFL players offered their support Wednesday for Cincinnati Bengals receiver Tee Higgins.
Read more »
Players around NFL say Damar Hamlin's injury wasn't Tee Higgins' faultTeammates and other NFL players offered their support Wednesday for Cincinnati Bengals receiver Tee Higgins.
Read more »
Players around NFL say Damar Hamlin's injury wasn't Tee Higgins' faultTeammates and other NFL players offered their support Wednesday for Cincinnati Bengals receiver Tee Higgins.
Read more »
Players around NFL say Damar Hamlin's injury wasn't Tee Higgins' faultTeammates and other NFL players offered their support Wednesday for Cincinnati Bengals receiver Tee Higgins.
Read more »
Tech layoffs may further disrupt equity and diversity effortsSurging firings by technology companies last year are disproportionately affecting women and mid-career talent which may make it more difficult to improve diversity
Read more »