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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. 

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.

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.

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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Canada’s response to Trump deportation plan a key focus of revived cabinet committee

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OTTAWA, W.Va. – U.S. president-elect Donald Trump’s promise launch a mass deportation of millions of undocumented immigrants has the Canadian government looking at its own border.

Deputy Prime Minister Chrystia Freeland said Friday the issue is one of two “points of focus” for a recently revived cabinet committee on Canada-U.S. relations.

Freeland said she has also been speaking to premiers about the issue this week.

“I do want Canadians to know it is one of our two central points of focus. Ministers are working hard on it, and we absolutely believe that it’s an issue that Canadians are concerned about, Canadians are right to be concerned about it,” Freeland said, after the committee met for the first time since Trump left office in 2021.

She did not provide any details of the plan ministers are working on.

Public Safety Minister Dominic Leblanc, whose portfolio includes responsibility for the Canada Border Services Agency, co-chairs the committee. Freeland said that highlights the importance of border security to Canada-U.S. relations.

There was a significant increase in the number of irregular border crossings between 2016 and 2023, which the RCMP attributed in part to the policies of the first Trump administration.

The national police service said it has been working through multiple scenarios in case there is a change in irregular migration after Trump takes office once again, and any response to a “sudden increase in irregular migration” will be co-ordinated with border security and immigration officials.

However, Syed Hussan with the Migrant Rights Network said he does not anticipate a massive influx of people coming into Canada, chalking the current discussion up to anti-migrant panic.

“I’m not saying there won’t be some exceptions, that people will continue to cross. But here’s the thing, if you look at the people crossing currently into the U.S. from the Mexico border, these are mostly people who are recrossing post-deportation. The reason for that is, is that people have families and communities and jobs. So it seems very unlikely that people are going to move here,” he said.

Since the Safe Third Country Agreement was modified last year, far fewer people are making refugee claims in Canada through irregular border crossings.

The agreement between Canada and the U.S. acknowledges that both countries are safe places for refugees, and stipulates that asylum seekers must make a refugee claim in the country where they first arrive.

The number of people claiming asylum in Canada after coming through an irregular border crossing from the U.S. peaked at 14,000 between January and March 2023.

At that time, the rule was changed to only allow for refugee claims at regular ports of entry, with some specific exemptions.

This closed a loophole that had seen tens of thousands of people enter Canada at Roxham Road in Quebec between 2017 and 2023.

In the first six months of 2024, fewer than 700 people made refugee claims at irregular crossings.

There are 34,000 people waiting to have their refugee claims processed in Canada, according to government data.

In the first 10 months of this year, U.S. border officials recorded nearly 200,000 encounters with people making irregular crossings from Canada. Around 27,000 encounters took place at the border during the first 10 months of 2021.

Hussan said the change to the Safe Third Country Agreement made it less likely people will risk potentially dangerous crossings into Canada.

“Trying to make a life in Canada, it’s actually really difficult. It’s more difficult to be an undocumented person in Canada than the U.S. There’s actually more services in the U.S. currently, more access to jobs,” Hussan said.

Toronto-based immigration lawyer Robert Blanshay said he is receiving “tons and tons” of emails from Americans looking at possibly relocating to Canada since Trump won the election early Wednesday.

He estimates that about half are coming from members of the LGBTQ+ community.

“I spoke to a guy yesterday, he and his partner from Kansas City. And he said to me, ‘You know, things weren’t so hunky-dory here in Kansas City being gay to begin with. The entire political climate is just too scary for us,'” Blanshay said.

Blanshay said he advised the man he would likely not be eligible for express entry into Canada because he is at retirement age.

He also said many Americans contacted him to inquire about moving north of the border after Trump’s first electoral victory, but like last time, he does not anticipate many will actually follow through.

This report by The Canadian Press was first published Nov. 8, 2024



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Surrey recount confirms B.C. New Democrats win election majority

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VANCOUVER – The British Columbia New Democrats have a majority government of 47 seats after a recount in the riding of Surrey-Guildford gave the party’s candidate 22 more votes than the provincial Conservatives.

Confirmation of victory for Premier David Eby’s party comes nearly three weeks after election night when no majority could be declared.

Garry Begg of the NDP had officially gone into the recount yesterday with a 27-vote lead, although British Columbia’s chief electoral officer had said on Tuesday there were 28 unreported votes and these had reduced the margin to 21.

There are ongoing recounts in Kelowna Centre and Prince George-Mackenzie, but these races are led by John Rustad’s B.C. Conservatives and the outcomes will not change the majority status for the New Democrats.

The Election Act says the deadline to appeal results after a judicial recount must be filed with the court within two days after they are declared, but Andrew Watson with Elections BC says that due to Remembrance Day on Monday, that period ends at 4 p.m. Tuesday.

Eby has said his new cabinet will be announced on Nov. 18, with the 44 members of the Opposition caucus and two members from the B.C. Greens to be sworn in Nov. 12 and the New Democrat members of the legislature to be sworn in the next day.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.



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Port of Montreal employer submits ‘final’ offer to dockworkers, threatens lockout

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MONTREAL – The employers association at the Port of Montreal has issued the dockworkers’ union a “final, comprehensive offer,” threatening to lock out workers at 9 p.m. Sunday if a deal isn’t reached.

The Maritime Employers Association says its new offer includes a three per cent salary increase per year for four years and a 3.5 per cent increase for the two subsequent years. It says the offer would bring the total average compensation package of a longshore worker at the Port of Montreal to more than $200,000 per year at the end of the contract.

“The MEA agrees to this significant compensation increase in view of the availability required from its employees,” it wrote Thursday evening in a news release.

The association added that it is asking longshore workers to provide at least one hour’s notice when they will be absent from a shift — instead of one minute — to help reduce management issues “which have a major effect on daily operations.”

Syndicat des débardeurs du port de Montréal, which represents nearly 1,200 longshore workers, launched a partial unlimited strike on Oct. 31, which has paralyzed two terminals that represent 40 per cent of the port’s total container handling capacity.

A complete strike on overtime, affecting the whole port, began on Oct. 10.

The union has said it will accept the same increases that were granted to its counterparts in Halifax or Vancouver — 20 per cent over four years. It is also concerned with scheduling and work-life balance. Workers have been without a collective agreement since Dec. 31, 2023.

Only essential services and activities unrelated to longshoring will continue at the port after 9 p.m. Sunday in the event of a lockout, the employer said.

The ongoing dispute has had major impacts at Canada’s second-biggest port, which moves some $400 million in goods every day.

On Thursday, Montreal port authority CEO Julie Gascon reiterated her call for federal intervention to end the dispute, which has left all container handling capacity at international terminals at “a standstill.”

“I believe that the best agreements are negotiated at the table,” she said in a news release. “But let’s face it, there are no negotiations, and the government must act by offering both sides a path to true industrial peace.”

Federal Labour Minister Steven MacKinnon issued a statement Thursday, prior to the lockout notice, in which he criticized the slow pace of talks at the ports in Montreal and British Columbia, where more than 700 unionized port workers have been locked out since Nov. 4.

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved,” he wrote on the X social media platform.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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