Prison and C$12.2M fines in major investment fraud case
Latest news on WhatsApp أجدد الأخبار على واتسابAn Ontario court has sentenced two businessmen to five years in prison each and ordered them to pay C$12.2 million apiece in fines after convicting them of defrauding hundreds of investors through misleading real-estate investment schemes in Manitoba and Ontario.
The defendants, Javad Rathore and Vince Petruzza, were found guilty of fraud related to syndicated mortgage investments tied to condominium developments in Winnipeg and Barrie, according to court documents and media reports.
The court heard that the pair misrepresented the value of the underlying properties and the level of risk involved, leading approximately 800 individual investors to contribute a combined C$33.1 million over a period of more than four years. Many investors believed their funds were secured, but the developments ultimately failed, resulting in significant financial losses.
In delivering the sentence, the judge said the scale of the deception and the impact on victims justified substantial prison terms and financial penalties, noting that the punishment could not fully undo the financial and emotional harm suffered by investors.
Court records show that both men have filed notices of appeal and were released on bail pending the appeal process, meaning the sentences are not yet being served.
The case has renewed scrutiny of syndicated mortgage investments in Canada and raised concerns about regulatory oversight and investor protection in high-risk private lending products.
