Developers behind Winnipeg's SkyCity condo project face fraud charges in Ontario: RCMP
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Two men behind a cancelled skyscraper project in Winnipeg are now facing fraud charges in Ontario, according to RCMP.
Mounties have charged Jawad Rathore of Markham, Ont. and Vince Petrozza of Richmond Hill, Ont. with fraud and secret commissions under the criminal code. The charges have not been proven in court.
RCMP said the charges come after an investigation, dubbed Project Dynasty, which began in 2016. Mounties said police received complaints related to business activities of Fortress Real Developments.
Rathore and Petrozza are listed as the founders of Fortress Real Developments on its website.
"In particular, allegations were received that the company was fraudulently obtaining investments in a syndicated mortgage investment scheme," RCMP said, adding a syndicated mortgage scheme is when two or more people invest in a single mortgage for one property.
"It is alleged that the founders of Fortress Real Developments engaged in fraud by orchestrating an ongoing scheme whereby they did not disclose the various risks to brokers and investors."
Fortress Real Developments was the development company behind the skyscraper project in Winnipeg which was never completed. The $180 million project was supposed to see the 388-unit SkyCity development built on Graham Avenue.
RCMP said the two men are scheduled to appear in court on Aug. 3 in Toronto.
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