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Private jets, yachts and parties: Ontario landlords flaunted lavish lifestyle as business began to crumble – CBC.ca

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As his real estate empire showed signs of trouble, a robed Robby Clark appeared in a promotional video, standing at the bow of a yacht, arms raised to the sky as a camera circled overhead. 

“You can stick me in the desert with nothing and I’m going to come out owning the desert,” Clark is heard saying at another point in the three-minute video.

It was posted to several Instagram accounts like “billonaireclassy” in March 2022 and shows the former YTV child actor- turned-real estate investor living a life of luxury.  

He’s shown getting into sports cars and relaxing in private jets, smiling next to famous rappers like Kanye West and Rick Ross, and taking in the view from a California mansion. 

Maps of Sault Ste. Marie and Sudbury appear — they’re among the Ontario communities where he owned an estimated 800 properties and thousands of tenants lived. 

“I’m going to have a billion dollars in holdings,” Clark says. 

WATCH | Robby Clark presents himself as a wealthy, successful investor on social media: 

Ontario real estate Investor in financial trouble shows wealthy lifestyle on Instagram

15 hours ago

Duration 1:16

Former YTV child actor Robby Clark starred in this promotional video talking about his business success, which was posted to Instagram in March 2022.

Clark’s business partners from the Hamilton area — Dylan Suitor, Ryan Molony and Aruba Butt — also make appearances.

In the video, Molony and Suitor dance with Clark in nightclubs, and Suitor and Clark take selfies on the sidelines of an NFL game. Butt and Clark stand side by side on the yacht, wearing designer robes and raising their matching tumblers to the camera. 

“Ultimately if you’re going to work with lenders, and we work with a lot of private lenders on acquisitions, they gotta know you know what you’re doing,” Clark says in the video. 

But behind the scenes, Clark’s business, SID Developments, and 11 connected corporations owned by Molony, Suitor and Butt had taken on millions of dollars in debt and were struggling to keep up with payments to lenders, according to documents filed with the Ontario Superior Court of Justice. 

Two men dancing
Molony and Clark appear together in a 2021 video, and are seen partying at a nightclub. (billonaireclassy/Instagram)

Meanwhile, rundown properties sat vacant, and utility bills, property taxes and contractors went unpaid.

By early 2024, the corporations had only $100,000 in the bank and owed $144 million to lenders, faced dozens of lawsuits from creditors and received court-ordered bankruptcy protection.

Since CBC Hamilton reported on the court proceedings last week, Clark, Suitor, Molony and Butt have made many of their social media accounts private, and have not responded to requests for comment. 

But court documents and interviews with experts help explain how they became one of the largest holders of residential real estate in Ontario, and now are on the verge of losing it all.

Hamilton mortgage broker arranged many loans

This isn’t the first time Clark has faced financial trouble.

He lost the money he earned from acting as a child because of “a lack of financial education,” Clark told YouTuber David Meltzer in a 2021 video.

Clark declared bankruptcy in 2009 and then started a meal-kit business, which also failed, he said. He then turned to real estate investing, but his credit score “was a joke,” so he had to get “other people to sign on the dotted line” when purchasing his first properties.

In recent years, Clark’s company — through Butt, Molony and Suitor’s corporations — acquired, renovated and leased or sold over 800 properties, mainly single-family homes, fuelled by more than 1,300 loans, the court documents say. 

The vast majority came from Hamilton mortgage broker Claire Drage, according to the documents. Through her companies, Windrose Capital and The Lion’s Share Group, she brought on private lenders to invest in Butt’s, Molony’s and Suitor’s corporations.

woman in blazer
Hamilton-based mortgage broker Claire Drage facilitated the vast majority of loans through her companies, Windrose Capital, and The Lion’s Share Group. (ClaireDrageTheWindroseGroup/Facebook)

She provided their corporations with secured mortgage loans, which give lenders collateral if borrowers don’t meet their debt obligations, according to the court documents. She also provided them with unsecured promissory notes — loans not tied to any collateral.

Drage did not respond to a request for comment, but said in a Facebook post last October that “our borrower eligibility criteria are rigorously upheld, ensuring sound lending practices.” 

In one instance, she supplied Suitor’s corporation, Interlude, with $23 million in mortgages and another $29 million in promissory notes. 

In another, she arranged $6.5 million in mortgages for Butt’s corporation, Joint Captain Real Estate. Her son, Sam Drage and daughter-in-law Bronwyn Bullen are shareholders.  

She then lent them a further $3 million in promissory notes. 

Sam Drage and Bullen did not respond to requests for comment. 

Toronto mortgage broker Ron Butler, who is not connected with the case, said the family ties are a conflict of interest that Drage would be required to disclose to investors.

He described the huge number of loans arranged by Drage as “frightening,” and said while it’s not illegal for mortgage brokers to issue riskier promissory notes, he believes it’s improper because it puts lenders in “such a bad position” if something happens to their investment.

“I wouldn’t touch them with a 10-foot pole,” Butler said of promissory notes.

When the Financial Services Regulatory Authority of Ontario — which governs mortgage brokers — was asked if it is investigating Drage, it said in a statement that it is “thoroughly reviewing related concerns.” 

Many homes ‘unsalvageable’: Sault Ste. Marie mayor 

Despite generating “significant annual revenues” from rental income and the sale of some properties, the corporations didn’t have enough money to make their debt payments, the court documents say. 

“I don’t keep [any capital] in the accounts,” Clark said in the YouTube video from 2021.

two men sit on couch
Clark and Suitor, left to right, are shown in a photo posted on Jan. 3, 2020. (robbywclark1/Facebook)

By that fall, Clark had begun negotiating selling off about a quarter of their properties to another real estate investment and property management company, Core Developments, chief executive officer Corey Hawtin told CBC Hamilton. 

The sale closed in May 2022, but Clark’s business continued to default on loans and couldn’t find a refinancing option, say the court documents. But as interest rates increased and property values fell, Suitor, Molony and Butt continued to take on new debt, the court documents show. 

Patty Vanminnen invested in mortgages for Suitor to buy two Sudbury homes last year, but wasn’t made aware of everything else going on, she said in an affidavit as part of the bankruptcy protection proceedings. 

“We were not advised by Suitor that these mortgages were being granted as part of a larger enterprise,” Vanminnen said, “or that there were hundreds of other lenders being granted mortgages as part of a larger business, or that any of the alleged problems being raised in this proceeding existed.”

At the end of the six-month mortgage term, Interlude defaulted on the mortgages, she said.

Vanminnen moved to recoup her money, but then Suitor, Molony and Butt filed for bankruptcy protection. The three now have protection from lawsuits until at least mid-February. 

In Sault Ste. Marie, a northern Ontario city of about 73,000, the corporations own about 200 homes, or one per cent of the housing stock, Mayor Matthew Shoemaker told CBC Hamilton. The impact has been overwhelmingly negative.

“I would be happy never to deal with these companies again,” he said.

Almost half the homes they own in Sault Ste Marie are in an “unsalvageable” state of disrepair and sit vacant, Shoemaker said. They’ve fought the city on property standard and fire code violations, and owe $645,000 in unpaid taxes, say the court documents.

“I think our community will be better off if the assets that they own in Sault Ste. Marie end up in the hands of other landlords, preferably local landlords,” Shoemaker said. 

Hawtin, Core Developments’ CEO, said his company is interested in buying more of the properties and limiting the number of tenants displaced. 

While Core has a similar business model to SID Developments, owning 550 properties, it has “appropriate debt-equity ratios,” said Hawtin. 

Tenants could face eviction if homes are sold to people who want to live in them, lenders want them vacated and it’s ordered by the court, or if court proceedings drag on and SID Developments can’t afford to keep them in a livable condition, Hawtin said. 

“I really hope the renters don’t get displaced through this process,” he said.

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STD epidemic slows as new syphilis and gonorrhea cases fall in US

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NEW YORK (AP) — The U.S. syphilis epidemic slowed dramatically last year, gonorrhea cases fell and chlamydia cases remained below prepandemic levels, according to federal data released Tuesday.

The numbers represented some good news about sexually transmitted diseases, which experienced some alarming increases in past years due to declining condom use, inadequate sex education, and reduced testing and treatment when the COVID-19 pandemic hit.

Last year, cases of the most infectious stages of syphilis fell 10% from the year before — the first substantial decline in more than two decades. Gonorrhea cases dropped 7%, marking a second straight year of decline and bringing the number below what it was in 2019.

“I’m encouraged, and it’s been a long time since I felt that way” about the nation’s epidemic of sexually transmitted infections, said the CDC’s Dr. Jonathan Mermin. “Something is working.”

More than 2.4 million cases of syphilis, gonorrhea and chlamydia were diagnosed and reported last year — 1.6 million cases of chlamydia, 600,000 of gonorrhea, and more than 209,000 of syphilis.

Syphilis is a particular concern. For centuries, it was a common but feared infection that could deform the body and end in death. New cases plummeted in the U.S. starting in the 1940s when infection-fighting antibiotics became widely available, and they trended down for a half century after that. By 2002, however, cases began rising again, with men who have sex with other men being disproportionately affected.

The new report found cases of syphilis in their early, most infectious stages dropped 13% among gay and bisexual men. It was the first such drop since the agency began reporting data for that group in the mid-2000s.

However, there was a 12% increase in the rate of cases of unknown- or later-stage syphilis — a reflection of people infected years ago.

Cases of syphilis in newborns, passed on from infected mothers, also rose. There were nearly 4,000 cases, including 279 stillbirths and infant deaths.

“This means pregnant women are not being tested often enough,” said Dr. Jeffrey Klausner, a professor of medicine at the University of Southern California.

What caused some of the STD trends to improve? Several experts say one contributor is the growing use of an antibiotic as a “morning-after pill.” Studies have shown that taking doxycycline within 72 hours of unprotected sex cuts the risk of developing syphilis, gonorrhea and chlamydia.

In June, the CDC started recommending doxycycline as a morning-after pill, specifically for gay and bisexual men and transgender women who recently had an STD diagnosis. But health departments and organizations in some cities had been giving the pills to people for a couple years.

Some experts believe that the 2022 mpox outbreak — which mainly hit gay and bisexual men — may have had a lingering effect on sexual behavior in 2023, or at least on people’s willingness to get tested when strange sores appeared.

Another factor may have been an increase in the number of health workers testing people for infections, doing contact tracing and connecting people to treatment. Congress gave $1.2 billion to expand the workforce over five years, including $600 million to states, cities and territories that get STD prevention funding from CDC.

Last year had the “most activity with that funding throughout the U.S.,” said David Harvey, executive director of the National Coalition of STD Directors.

However, Congress ended the funds early as a part of last year’s debt ceiling deal, cutting off $400 million. Some people already have lost their jobs, said a spokeswoman for Harvey’s organization.

Still, Harvey said he had reasons for optimism, including the growing use of doxycycline and a push for at-home STD test kits.

Also, there are reasons to think the next presidential administration could get behind STD prevention. In 2019, then-President Donald Trump announced a campaign to “eliminate” the U.S. HIV epidemic by 2030. (Federal health officials later clarified that the actual goal was a huge reduction in new infections — fewer than 3,000 a year.)

There were nearly 32,000 new HIV infections in 2022, the CDC estimates. But a boost in public health funding for HIV could also also help bring down other sexually transmitted infections, experts said.

“When the government puts in resources, puts in money, we see declines in STDs,” Klausner said.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

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World’s largest active volcano Mauna Loa showed telltale warning signs before erupting in 2022

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WASHINGTON (AP) — Scientists can’t know precisely when a volcano is about to erupt, but they can sometimes pick up telltale signs.

That happened two years ago with the world’s largest active volcano. About two months before Mauna Loa spewed rivers of glowing orange molten lava, geologists detected small earthquakes nearby and other signs, and they warned residents on Hawaii‘s Big Island.

Now a study of the volcano’s lava confirms their timeline for when the molten rock below was on the move.

“Volcanoes are tricky because we don’t get to watch directly what’s happening inside – we have to look for other signs,” said Erik Klemetti Gonzalez, a volcano expert at Denison University, who was not involved in the study.

Upswelling ground and increased earthquake activity near the volcano resulted from magma rising from lower levels of Earth’s crust to fill chambers beneath the volcano, said Kendra Lynn, a research geologist at the Hawaiian Volcano Observatory and co-author of a new study in Nature Communications.

When pressure was high enough, the magma broke through brittle surface rock and became lava – and the eruption began in late November 2022. Later, researchers collected samples of volcanic rock for analysis.

The chemical makeup of certain crystals within the lava indicated that around 70 days before the eruption, large quantities of molten rock had moved from around 1.9 miles (3 kilometers) to 3 miles (5 kilometers) under the summit to a mile (2 kilometers) or less beneath, the study found. This matched the timeline the geologists had observed with other signs.

The last time Mauna Loa erupted was in 1984. Most of the U.S. volcanoes that scientists consider to be active are found in Hawaii, Alaska and the West Coast.

Worldwide, around 585 volcanoes are considered active.

Scientists can’t predict eruptions, but they can make a “forecast,” said Ben Andrews, who heads the global volcano program at the Smithsonian Institution and who was not involved in the study.

Andrews compared volcano forecasts to weather forecasts – informed “probabilities” that an event will occur. And better data about the past behavior of specific volcanos can help researchers finetune forecasts of future activity, experts say.

(asterisk)We can look for similar patterns in the future and expect that there’s a higher probability of conditions for an eruption happening,” said Klemetti Gonzalez.

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The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

The Canadian Press. All rights reserved.

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Waymo’s robotaxis now open to anyone who wants a driverless ride in Los Angeles

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Waymo on Tuesday opened its robotaxi service to anyone who wants a ride around Los Angeles, marking another milestone in the evolution of self-driving car technology since the company began as a secret project at Google 15 years ago.

The expansion comes eight months after Waymo began offering rides in Los Angeles to a limited group of passengers chosen from a waiting list that had ballooned to more than 300,000 people. Now, anyone with the Waymo One smartphone app will be able to request a ride around an 80-square-mile (129-square-kilometer) territory spanning the second largest U.S. city.

After Waymo received approval from California regulators to charge for rides 15 months ago, the company initially chose to launch its operations in San Francisco before offering a limited service in Los Angeles.

Before deciding to compete against conventional ride-hailing pioneers Uber and Lyft in California, Waymo unleashed its robotaxis in Phoenix in 2020 and has been steadily extending the reach of its service in that Arizona city ever since.

Driverless rides are proving to be more than just a novelty. Waymo says it now transports more than 50,000 weekly passengers in its robotaxis, a volume of business numbers that helped the company recently raise $5.6 billion from its corporate parent Alphabet and a list of other investors that included venture capital firm Andreesen Horowitz and financial management firm T. Rowe Price.

“Our service has matured quickly and our riders are embracing the many benefits of fully autonomous driving,” Waymo co-CEO Tekedra Mawakana said in a blog post.

Despite its inroads, Waymo is still believed to be losing money. Although Alphabet doesn’t disclose Waymo’s financial results, the robotaxi is a major part of an “Other Bets” division that had suffered an operating loss of $3.3 billion through the first nine months of this year, down from a setback of $4.2 billion at the same time last year.

But Waymo has come a long way since Google began working on self-driving cars in 2009 as part of project “Chauffeur.” Since its 2016 spinoff from Google, Waymo has established itself as the clear leader in a robotaxi industry that’s getting more congested.

Electric auto pioneer Tesla is aiming to launch a rival “Cybercab” service by 2026, although its CEO Elon Musk said he hopes the company can get the required regulatory clearances to operate in Texas and California by next year.

Tesla’s projected timeline for competing against Waymo has been met with skepticism because Musk has made unfulfilled promises about the company’s self-driving car technology for nearly a decade.

Meanwhile, Waymo’s robotaxis have driven more than 20 million fully autonomous miles and provided more than 2 million rides to passengers without encountering a serious accident that resulted in its operations being sidelined.

That safety record is a stark contrast to one of its early rivals, Cruise, a robotaxi service owned by General Motors. Cruise’s California license was suspended last year after one of its driverless cars in San Francisco dragged a jaywalking pedestrian who had been struck by a different car driven by a human.

Cruise is now trying to rebound by joining forces with Uber to make some of its services available next year in U.S. cities that still haven’t been announced. But Waymo also has forged a similar alliance with Uber to dispatch its robotaxi in Atlanta and Austin, Texas next year.

Another robotaxi service, Amazon’s Zoox, is hoping to begin offering driverless rides to the general public in Las Vegas at some point next year before also launching in San Francisco.

The Canadian Press. All rights reserved.

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