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Post by nemesis on Mar 3, 2020 16:06:04 GMT
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brad1
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Post by brad1 on Mar 3, 2020 16:38:43 GMT
Following an investigation by the OSC’s Joint Serious Offences Team (JSOT), David Singh was charged with Securities Act Offences because "a significant percentage of the money obtained by this alleged fraud was used by Singh for purposes unrelated to these businesses and was to the detriment of investors". I sincerely hope this is not the case with the HRAC being used outside of its business purview for the benefit of Georgian Bay Estates Limited in which Larry Dunn is Director and President. If you remember the findings of a fellow investor posted on this Forum Undisclosed HRAC projects that need urgent answers, on the HRAC page at Tarion there are listed construction projects we were never told of: Private Residences of the Georgian Bay Club (516689 7th Line) and Luxury residences on Georgian Bay Lane. The owner of these residences is Georgian Bay Estates Limited in which Larry Dunn is Director and President. HE explanation is that HRAC’s Tarion registration fee “is shared with Georgian Bay Estates Limited with the purpose of saving the Shareholders' money”. This explanation is ridiculous and cannot be taken seriously when considering that the one-time fee to register a new builder is $2,500 and the annual renewal is only $500! Even if the savings would be significant, not only providing services to other vendors is outside of the HRAC purview, but Georgian Bay Estates is not a registered builder. As a result, the builder responsibilities and expenses related to the construction projects are expenses and liabilities for HRAC. Why are HMIC Investors exposed to this complicated scheme that doesn’t seem legal under Tarion rules that requires a builder to be registered in its own name to be legit? How is the concept of “sharing” the enrollment fees implemented operationally, i.e. in books? How are these transactions recorded? |
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Post by nemesis on Mar 3, 2020 16:51:32 GMT
You are exactly right. There is no reason whatever for Mr. Dunn to co-mingle his various businesses to save a couple of thousand bucks. I would like to know who is the actual registered builder for Georgian Bay Estates and luxury residences - it is the builder who needs to carry Tarion protection I believe.
It appears that the lender is Pace - a company that has also appeared in the news - and not in a good way.
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brad1
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Post by brad1 on Mar 3, 2020 20:27:08 GMT
You are exactly right. There is no reason whatever for Mr. Dunn to co-mingle his various businesses to save a couple of thousand bucks. I would like to know who is the actual registered builder for Georgian Bay Estates and luxury residences - it is the builder who needs to carry Tarion protection I believe. It appears that the lender is Pace - a company that has also appeared in the news - and not in a good way. "New homes (both freehold and condominium units) built for sale or under the terms of a construction contract must be enrolled with Tarion (for a fee)". ONLY a REGISTERED BUILDER CAN ENROLL new homes. To find the builder that enrolled new homes at a certain address (e.g Georgian Bay Estates and luxury residences), you can go to TARION Enrolment Search. For the addresses I searched, I found HRAC as builder, as a result it appears that we are on the hook for liabilities coming from warranty. Re: possible cash flowing from HRAC (Investors' money) to these projects, taking loans from HMIC is not the only way. HRAC has its own revenues from renting and selling properties. An independent audit is now necessary for restoring our trust that our funds are still there!!! |
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Post by forexloonie on Mar 3, 2020 21:03:45 GMT
I might sound like a broken record but we really need the regulator to step in. It might be counterintuitive, but HE should also support the idea, if everything is good and legal on their side, OSC investigation would say so and the investors will get relief from being tormented. OSC has an online complaint system OSC Complaint, Tip & Inquiry |
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Post by Moderator on Mar 3, 2020 22:13:22 GMT
I might sound like a broken record but we really need the regulator to step in. It might be counterintuitive, but HE should also support the idea, if everything is good and legal on their side, OSC investigation would say so and the investors will get relief from being tormented. OSC has an online complaint system OSC Complaint, Tip & InquiryI hear you, forexloonie , the reorganization standoff is tormenting us all. Adding up to this the perspective of being the victim of fraud makes things even worst. HE should be the first interested to address this explosive situation and instead of blaming and threatening Investors, the Executive Directors should show leadership and terminate the standoff by accepting the Investors proposal to orderly wind-up the fund. Many Investors repeatedly objected to HarbourEdge converting the MIC into a real estate development/management business based on the fact that this type of investment is not suitable for them and insisted that HRAC assets be expeditiously disposed at the best possible market price and the proceeds flowed back in MIC as most properties are finished, some rented out and could have been sold long time ago. Recent discoveries, based on public documents/resources, suggest that HRAC business is intermingled with outside corporations where Executive Directors have ownership/interests, exposing our investment to hidden uses and generating the concern that the Directors might benefit personally from maintaining HRAC. After all, the complicated schemes that were discovered recently are linked to HRAC: using the HRAC registration as builder/vendor outside of its purview for businesses in which Directors have ownership/interests or transferring HMIC assets to corporations that belong to Directors. None of these transactions / schemes was disclosed to shareholders. It was only after occurrences were discovered in public documents / resources and Investors asked repeatedly for clarifications that HMIC provided some unsatisfactory, sometimes naive explanations. How are these transactions recorded in books? Are funds flowing from HRAC to these schemes? We don't know!We don’t even know the HMIC assets and we need first to identify those assets and then determine their real value. The level of distrust between Investors and HE is now explosive. Both sides need the regulator to step in and help them out. |
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brad1
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Posts: 39
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Post by brad1 on Mar 5, 2020 21:31:26 GMT
For me, the way Larry Dunn mixes a $200+ M corporation that belongs to Investors with his own companies (Georgian Bay Estates Limited, Dunn Capital Corporation, Landex Group, etc.) raises many questions. All these companies and more are located in the same office with HMIC at HarbourEdge Centre 40 Huron Street, Suite 300 Collingwood, Ontario Canada L9Y 4R3 and have the same phone number.
Are Larry Dunn’s companies paying their part of expenses to HMIC, e.g. rent and other admin costs? How are the expenses shared and reflected in the HMIC accounting? How far does the intermingling go, i.e. does it include sharing human resources?
Dunn Capital acting as agent for an HRAC property in Perth, Ontario suggests that mixing the HMIC business with Larry Dunn’s personal companies via HRAC goes beyond rent and admin expenses, maybe to payroll. The explanation provided by HarbourEdge is that a planner on DunnCap’s payroll assisted HRAC in Perth, Ontario on a zoning application. However, “neither HMIC nor HRAC compensated Dunn Capital Corporation or the planner for this assistance". We are required to believe that an employee of DunnCap did volunteer work for HRAC!
For the Chairman&CEO of a $200+ M Investment Fund that belongs to Investors, being in the position to be asked such a question is wrong! It is simply not acceptable and Investors should not tolerate this.
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Post by thebigshort on Mar 6, 2020 16:55:45 GMT
"What we don't understand is why isn't HarbourEdge selling the properties? In a prosperous real estate market as Canada is hard to argue that the market conditions are bad. What are the real reasons why HE is not selling faster the HRAC properties?"Many of us struggled to answer this repetitive question. I guess we just found the answer: maybe HE Directors need to maintain HRAC for personal gain and job security, regardless the harm they inflict on Investors. Facts support this sad discovery: not only construction projects of Larry's company are a liability for HRAC, but none of his companies is a registered builder according to Tarion Builder Directory (if you search Larry Dunn on director/officer name you’ll only find HRAC on his name). |
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