Class Action Lawsuit Against Platinum Equities

Links in the News:

Sept 15 2012: Platinum Equities faces ASC hearing -Calgary Herald

Sept 14 2012: Alberta Securities Commission alleges illegal distributions, prohibited representations and unfair practices in sales of securities by Platinum Equities Inc. - ASC site

Sept 14 2012: Calgary firm raised $58-million while misrepresenting facts to investors: regulatorThe Globe and Mail

Sept 14 2012: Alberta regulator accuses real-estate syndicator of illegal distributionsCanadian Business

Sept 14 2012: ASC alleges illegal distributions, prohibited representations and unfair practices in sales of securities by Platinum Equities Inc. – Sacramento Bee

Sept 12 2012Alberta Securities Commission – Notice of Hearing on Platinum EquitiesAlberta Securities Commission

Sept 10 2012:Class-action lawsuit launched against Calgary company - CBC

Sept 10 2012:INVESTORS MEET OVER CLAIMS OF BEING MISLEAD IN $160M DEAL – Sun News

Sept 9 2012:Suit alleges building-management firm took at least $160 million from nearly 2,200 people - The Province

Key Dates:

Sept 12 2012: Alberta Securities Commission alleges illegal distributions, prohibited representations and unfair practices in sales of securities by Platinum Equities Inc.

Sept 6 2012: Class action suit filed against Platinum Equities, involving key figure from Concrete Equities. The players involved include Dave Humeniuk, who has been sanctioned by the Alberta Securities Commission, and carries a life time ban for offences related to the Real Estate Commission of Alberta. Mr. Humeniuk was sanctioned by Alberta Securities Commission (ASC) in January 2012, for not disclosing this ban in Offering Memorandums prepared while he was involved with Concrete Equities,Shariff H. Chandran, who has been convicted for misrepresenting himself as a realtor, and Riaz Mamdani. (SHARIFF H. CHANDRAN, also known as S.H. Chandran, Sri Chandran and Srinivansan Chandran)

Class Action Lawsuit Against Platinum Equities

June 25, 2012, McGuigan Nelson LLP filed an Action in the Court of Queen’s Bench of Alberta to advance a claim on behalf of all investors and/or limited partners and/or shareholders in the projects listed in the link below. If you were an investor in one or more of those projects, the Statement of Claim contemplates your investment loss and will be advanced on your behalf. They have separate sub-classes in the lawsuit for each investment, which is generally listed in the link below. The Statement of Claim names many more parties, to incorporate the various corporations at issue with each investment. This is being advanced upon a class action basis, which further contemplates sub-classes for each limited partnership.

McGuigan Nelson LLP Web Site Links:

09/14 ASC lays charges against Platinum Equities more

09/11 Summary of News Coverage - Platinum more
09/11 Hundreds of Investors Attend Town Hall Meeting more
09/10 Important Information about Platinum Equities Class Action Lawsuit more
09/10 CBC The National reports on Platinum Equities Class Action Lawsuit more
09/06 Platinum Class Action Statement of Claim being Amended more
09/06 Press Release relating to Platinum Equities Class Action Lawsuit more
09/05 Message to Dominion (Qualia V) and Lucaya Investors more
08/31 Platinum Class Action: Lucaya Sale more

Thursday, December 16, 2010

1111-11th Ave SW

25 comments:

  1. How could this building be put up for sale without any previous knowledge from any LP's?

    ReplyDelete
  2. How can a letter dated Jan 26 "forcing" partners to vote on a due date of Friday Jan28 (yes thats right Jan.26th (mailed and dated)for a vote due no later than the 28th) turns out to have an overwhelming voter response of YES votes when I only received my letter on the 31 of January. I confered with a few of my co investors in this LP and they seemed to have had the same issue of not receiving the letter and notice of this sale until well after Jan. 28th. Something tells me the Chandran is trying to avoid a repeat of what is happening in Dominion. What Chandran is not aware is that some of us are already taking the steps into looking into having this LP's books reviewed regardless of this purported sale going through or not.

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  3. Now I voted for the sale and was very happy with the result considering the current market. I have been at numerous meetings and reading e-mails I am suspicious of the intent here. Are we really trying to protect our investment and get a return or are we looking to generate legal bills and create a situation for a hidden agenda?

    Curious.

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  4. I initially had the same concern regarding the timeline and spoke to Platinum about this. They explained that the deadline was not a hard date and that an extension would be requested if investors felt it was necessary. The way the deadline was mentioned in the letter was consistent with this.

    I know we have to ask the tough questions, and while I do have some issues with how things were handled, overall am happy with the return on this investment.

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  5. To "Curious":
    You voted for the sale and are "very happy with the result"?
    Any market conditions aside, we have to question whether you are even a legitimate Limited Partner.
    If by "agenda" you are referring to the fact that many investors are looking for the truth and transparency with respect to our investments with this company then that is definitely what is happening BUT it is not really "hidden" by any means and very much in the open.
    We would have to question your apparent complacency in accepting information at "face value" from PE and ignorance of facts in order to secure your happiness.
    Ever read the financial statements?
    Ever wonder about or question 2009 FS why there was $1,559,526 owing to "related parties" and just who these parties are/were?
    Ever wonder about or question why 2009 FS "current" due from related parties entry was $679,614?
    Ever wonder about or question 2009 FS current portion of long term debt being $1,641,999?
    Ever wonder or question 2009 FS long term debt (mortgage) showing as $4,705,785 when PE's marketing package stated balance after 5 years would be $,4,401,998?
    Are you not curious why there is a discrepancy of close to $304,000 NOT in our favour?
    In case you are not doing the math this equates to $3750.00 per LP unit.
    I can't speak for you but I would prefer that money to be in my pocket as a result of making this investment with my hard earned money as opposed to having the GP put extra debt that I (and you if you are an actual Limited Partner) have to pay.
    Did you wonder about or question the Schedule A entries that were sent out with voting documents the "accounts payable" amount of $485,000 that reduces our payout on the sale of our building by close to $6,000 per LP unit?
    Ever do a title search to find an extra $1.5 million second mortgage and extra mortgage amount on the original 2005 mortgage registered as additional debt against our building?
    Do you believe that these extra debt registrations allowed by the GP without even bothering to inform us really have had the net effect of getting you or any of us "a return"?
    Ever wonder why the GP never bothered to disclose any of the above and more to the Limited Partners?
    If you are a legitimate Limited Partner it is clear to many that your suspicions are definitely mis-directed.

    ReplyDelete
  6. We are curious how the value of a commercial office building could be $1,277,928.60?
    We have never seen a title transfer like this take place with a "cents" value placed on a property.
    It looks to us like some deductions have taken place to arrive at this number for the building's value.
    Hard to know when we are not provided with a copy of the Offer to Purchase and Sale Agreement.
    Here is the Barclay listing information for this building:
    http://www.barclaystreet.com/library/Property_Folders/bc1/Office/bp2143/Documents/1410%201st%20Street%20SW%20Particulars.pdf
    Listing price was $1,650,000.00.

    Platinum's Schedule A (provided with voting documents):
    What are the particulars of the $485,000 showing as "outstanding accounts payable" that we are having to pay?
    How is the $1.5 million second mortgage being paid off?
    It is not showing under "Repayment of Mortgage" yet it needs to be paid from somewhere.
    Proper answers are not coming from PE when these questions are asked and they are definitely being asked.
    "Total Distributions Earned To Date" entry includes loan repayments to Limited Partners ("Special Distributions" #2 and #3) of approximately $2469.12 total per LP unit.
    These loan re-payments to us although showing on Schedule A as "earned" HAVE NOT YET BEEN MADE even though they have been outstanding for a very long time (2009?).
    Platinum is telling investors they will receive these loan re-payments when our building sells yet this amount is NOT included in Schedule A under any "Estimated Distribution to Investors".
    WHY NOT?
    We will need to keep an eye out to ensure payment of these specific amounts is made in addition to the building sale proceeds along with any outstanding Q3 2009 and Q1 2010 that are supposedly to be paid upon the sale of Eleven Eleven according to Platinum.
    Why are Limited Partners not being paid their Q4 2009 distributions?
    If we were going to be paid these at the time before CRA garnisheed funds and these tax issues we are told by Platinum have been resolved, are we then not entitled to still receive these distributions owing in arrears to us?
    This makes no sense.
    Are any investors from various LP's or other investments like mortgage corporations ever going to see these Q4 2009 payments?
    If yes then when?
    not then why not?
    We will certainly expect to have Platinum supply a Statement of Adjustments and detailed breakdown for any cheques/payments we receive from them from the sale of BOTH of these buildings and other funds owing which are past due to Limited Partners.

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  7. Beltline office space in demand
    Vacancy rate falls to 10%
    By Mario Toneguzzi, Calgary Herald February 16, 2011
    Dan Harmsen, of Barclay Street Real Estate Ltd., which released a report that says Beltline office space demand is strong.
    CALGARY - Demand for office space in the Beltline area strengthened throughout last year with the vacancy rate declining.
    Vacancy decreased in the fourth quarter of 2010 for the fourth consecutive quarter in the popular area just outside the downtown, according to a report by Barclay Street Real Estate in Calgary.
    The Beltline office vacancy rate fell from a peak of 16.3 per cent in the fourth quarter of 2009 to 10.0 per cent in the last quarter of 2010.
    There was 148,300 square feet of positive absorption in the fourth quarter.
    Annual absorption reached a positive 437,400 square feet for 2010 which is a significant improvement from the negative 571,000 square feet of absorption experienced throughout 2009, said the report.
    Paul McKay, associate with Barclay Street, said the positive leasing activity has been generated because of the increased activity in the energy sector in the province. And that is leading engineering firms and energy-related service companies to look for additional office space.
    "From the second quarter of 2009 to the second quarter of 2010, the market bottomed out in the Beltline but then picked up," said McKay.
    Barclay Street is forecasting the vacancy rate in the Beltline to fall to eight per cent this year. Total inventory is just over 6.4 million square feet.
    "You're going to see some groups - developers - contemplating new construction in the next couple of years," said McKay.
    The suburban office market has seen a similar trend with vacancy ending the 2010 year at 10.8 per cent, down from 15.7 per cent at the start of the year. The suburban office vacancy rate was 17 per cent in the fourth quarter of 2009.
    Annual absorption in the market was 740,726 square feet. Total inventory in the market is just over 15.3 million square feet.
    The report forecasts the vacancy rate in 2011 to increase slightly to 10.9 per cent.
    "For the last year, the train has been taking off. The train is starting to roll," said McKay of the suburban office market.
    That was evident in the fourth quarter year-over-year comparisons. In 2010, absorption hit a positive 150,108 square feet while in 2009 it was negative 364,300 square feet.

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  8. Quite agree,hopefuly we'll have some news to post by next week on legal representative for ALL of Platinum investors. This will be a call to arms and we will need ALL on board to not only help punish those for wrong doing but also for FULL restitution from ALL guilty parties.
    February 16, 2011 1:09 PM

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  9. Dominion Place Investors vs. Defendant Multus Investment Corporation (General Partner/Shariff Chandran) is scheduled for TUESDAY,MARCH 1, 2011 10:00 a.m. at Court of Queen's Bench, Calgary.
    YOUR ATTENDANCE WOULD BE APPRECIATED.

    ReplyDelete
  10. Doug said...

    did you catch the article in the Calgary Herald business section today? "security regulators cracking down on fraud". Talks about ASC taking fraudsters to criminal court and getting jail time. Talks about Calgarian, Robert John Sellars being found guilty of lying to investors, received a two year sentence and was ordered to pay restitution of almost $2 million.

    a step in the right direction.couldn't come at a better time.

    Doug
    February 23, 2011 10:04 AM

    ReplyDelete
  11. Anonymous said...

    Since Shariff Chandran is only using limited partners' money to accomplish his own personal and financial goals, limited partners should charge him penalties and interest. He cannot get financing from major banks like the CIBC and others, so he treats us like his bank and still wants to rip us off at the end, like in the Dominion case.
    Wednesday, May 18, 2011 7:03:00 AM

    ReplyDelete
  12. To All Limited Partners

    Get out of your limited partnership with Platinum Equities. Shariff and Chitra Chandran are nothing but SCREWBALL SCUMMERS.

    ReplyDelete
  13. On January 26, 2011 Mr. Chandran wrote to investors regarding a sale offer on the Eleven Eleven Building. This sale price (OFFER) of $8,977,928.60 included $7,700,000 cash and also clear title to a building owned by the Purchaser located at 1410-1st Street SW with an estimated value of $1,277,928.60. This building was to be listed for sale immediately upon possession on behalf of unit holders.
    With that letter, Mr. Chandran also provided a Calculation of Distributions to Investors showing the per unit amount that would be distributed to the limited partners firstly on the sale of the Eleven Eleven Building based on a sale price of $7,700,000 cash. Mr. Chandran in his letter and calculations also stated that the ONLY mortgage balance owing by the Partnership was $4,570,168 to be paid from the cash proceeds from the sale of the Eleven Eleven Building.
    Calculations for distribution to unit holders upon the sale of Eleven Eleven alone was provided as $35,148.48 per unit. A further "estimated" distribution to unit holders of $7,461.63 per unit would be paid "assuming the successful sale of the building located at 1410-1st Street SW @ $1,277,928.60".
    The Calculation of Distributions to Investors provided by Mr. Chandran did not disclose/include a second mortgage with Ash and Jess Holdings Ltd. for $1.5 million still registered against the Partnership's building. It is believed that the current amount owing on this SURPRISE second mortgage was estimated to be approximately $1.6 million at the time of this January 26,,2011 Chandran letter.
    A TITLE SEARCH RECENTLY CONDUCTED MAY 30, 2011 REVEALED THAT THE ELEVEN ELEVEN BUILDING WAS ACTUALLY SOLD ON MARCH 30, 2011 BUT NOT FOR $7,700,000 BUT $9,300,000 INSTEAD ($1.6 MILLION MORE THAN WHAT CHANDRAN REPRESENTED TO UNIT HOLDERS IN HIS CORRESPONDENCE).
    Unit holders have heard NOTHING from Platinum Equities since receiving a letter from Mr. Chandran dated March 7, 2011 informing us that the sale would "close within 60 days" based on the original sale price represented in his January letter.
    Simple math calculations? An extra $19,753,086 per unit SHOWS AS FUNDS OWING to unit holders from the sale proceeds of the Eleven Eleven Building itself based on this increased sale price of $9,300,000!
    Or are we now going to hear another "story" from these people?
    It has been two months since the Eleven Eleven Building sold but again unit holders have received no further communications and no payouts from the sale proceeds of $9,300,000.

    ReplyDelete
  14. On January 26, 2011 Mr. Chandran wrote to investors regarding a sale offer on the Eleven Eleven Building. This sale price (OFFER) of $8,977,928.60 included $7,700,000 cash and also clear title to a building owned by the Purchaser located at 1410-1st Street SW with an estimated value of $1,277,928.60. This second building was to be listed for sale immediately upon possession on behalf of unit holders.
    With that letter, Mr. Chandran also provided a Calculation of Distributions to Investors showing the per unit amount that would be distributed to the limited partners firstly on the sale of the Eleven Eleven Building based on a sale price of $7,700,000 cash. Mr. Chandran in his letter and calculations also stated that the ONLY mortgage balance owing by the Partnership was $4,570,168 to be paid from the cash proceeds from the sale of the Eleven Eleven Building.
    Calculations for distribution to unit holders upon the sale of Eleven Eleven alone was provided as $35,148.48 per unit. A further "estimated" distribution to unit holders of $7,461.63 per unit would be paid "assuming the successful sale of the building located at 1410-1st Street SW @ $1,277,928.60".
    The Calculation of Distributions to Investors provided by Mr. Chandran did not disclose/include a 2008 one year term second mortgage with Ash and Jess Holdings Ltd. for $1.5 million still registered against the Partnership's building. It is believed that the current amount owing on this SURPRISE second mortgage was estimated to be approximately $1.6 million at the time of this January 26, 2011 letter to investors from Mr. Chandran.
    A TITLE SEARCH RECENTLY CONDUCTED MAY 30, 2011 REVEALED THAT THE ELEVEN ELEVEN BUILDING WAS ACTUALLY SOLD ON MARCH 30, 2011 BUT NOT FOR $7,700,000 BUT $9,300,000 INSTEAD ($1.6 MILLION MORE THAN WHAT CHANDRAN REPRESENTED TO UNIT HOLDERS IN HIS CORRESPONDENCE).
    This sale consisted of $3.3 million cash and a $6 million mortgage obtained by the Purchaser from RBC. All details of the actual sale transaction are included in the registered “Transfer of Land” document which was signed by Mr. Chandran on March 30, 2011.
    Unit holders have heard NOTHING from Platinum Equities since receiving a letter from Mr. Chandran dated March 7, 2011 informing investors that the sale would "close within 60 days" based on the original sale price represented in his January letter.
    Simple math calculations?
    An extra $19,753.08 per unit SHOWS AS FUNDS OWING to unit holders from the sale proceeds of the Eleven Eleven Building itself based on this increased sale price of $9,300,000!
    This is $54,901.56 per unit owing to investors and NOT $35,148.48. Or are we now going to hear another "story" from these people as to why investors will not receive funds they are legally entitled to?
    It has been two months since the Eleven Eleven Building sold but again unit holders have received no further communications and no payouts from the sale proceeds of $9,300,000.

    ReplyDelete
  15. On January 26, 2011 Mr. Chandran wrote to investors regarding a sale offer on the Eleven Eleven Building. This sale price (OFFER) of $8,977,928.60 included $7,700,000 cash and also clear title to a building owned by the Purchaser located at 1410-1st Street SW with an estimated value of $1,277,928.60. This second building was to be listed for sale immediately upon possession on behalf of unit holders.
    With that letter, Mr. Chandran also provided a Calculation of Distributions to Investors showing the per unit amount that would be distributed to the limited partners firstly on the sale of the Eleven Eleven Building based on a sale price of $7,700,000 cash. Mr. Chandran in his letter and calculations also stated that the ONLY mortgage balance owing by the Partnership was $4,570,168 to be paid from the cash proceeds from the sale of the Eleven Eleven Building.
    Calculations for distribution to unit holders upon the sale of Eleven Eleven alone was provided as $35,148.48 per unit. A further "estimated" distribution to unit holders of $7,461.63 per unit would be paid "assuming the successful sale of the building located at 1410-1st Street SW @ $1,277,928.60".
    The Calculation of Distributions to Investors provided by Mr. Chandran did not disclose/include a 2008 one year term second mortgage with Ash and Jess Holdings Ltd. for $1.5 million still registered against the Partnership's building. It is believed that the current amount owing on this SURPRISE second mortgage was estimated to be approximately $1.6 million at the time of this January 26, 2011 letter to investors from Mr. Chandran.
    A title search recently conducted revealed that the Eleven Eleven Building was actually sold March 30, 2011; NOT for $7,700,000 cash but $9,300,000 cash and mortgage ($1.6 million more than what Chandran represented to investors in correspondence for Special Resolution voting).
    This sale consisted of $3.3 million cash and a $6 million mortgage obtained by the Purchaser from RBC. All details of the actual sale transaction were included in the registered “Transfer of Land” document which was signed by Mr. Chandran on March 30, 2011.
    Unit holders have heard NOTHING from Platinum Equities since receiving a letter from Mr. Chandran dated March 7, 2011 informing investors that the sale would "close within 60 days" based on the original sale price represented in his January letter.
    Simple math calculations? An extra $19,753.08 per unit SHOWS AS FUNDS OWING to unit holders from the sale proceeds of the Eleven Eleven Building itself based on this increased sale price of $9,300,000!
    This is $54,901.56 per unit owing to investors and NOT $35,148.48. Or are we now going to hear another "story" from these people as to why investors will not receive funds they are legally entitled to?
    It has been two months since the Eleven Eleven Building sold but again unit holders have received no further communications and no payouts from the sale proceeds of $9,300,000.

    ReplyDelete
    Replies
    1. I just NOW received a check of $34,372 and again it does not chive with any of mine or your calculations!!!!!There was no statement attached!!

      Delete
  16. Where are the 2010 financial statements?
    These were to be distributed to unit holders at the end of March 2011.

    ReplyDelete
  17. Anonymous said...

    To Posting Friday June 3, 2011 8.17 AM

    Once again, Shariff Chandran is stealing from investors by not communicating the sale and its details and also paying out less money than ought to be.

    Must we advise limited partners about rallying and hiring litigation teams to get back what is due to limited partners?

    Other limited partners from another investors' blog said that multiple partners from projects should make a list of limited partners from each project that they are in. Next we create a database of limited partners, eliminate duplication and cross referencing who is which project. Then, we must ALL get together by coordinating and meeting to decide what legal teams we will hire to get our money plus rightful earnings back from Shariff and Chitra Chandran and Platinum Equities Inc.

    We are tired of each of you complaining about what is happening in your project, about Shariff Chandran stealing your money and not telling you. It is about time we get our act together and fight this CRIMINALS, Shariff Chandran and Chitra Chandran.
    Saturday, June 04, 2011 4:38:00 AM

    ReplyDelete
  18. Anonymous said...

    To Posting Friday June 3, 2011 8.17 AM

    1. If you live in Calgary, you can go to the police station closest to 906 12th Avenue SW Calgary to file criminal charges of theft or you can go to the police station nearest to where you live. Get other limited partners of your project Eleven eleven building to file criminal charges of theft as well.

    2. Next, you head down to the RCMP office to file criminal charges as well. You can do the same as the police reporting by getting others from your Eleven eleven building project to file criminal charges too.

    3. Next you organize limited partners from your group to hire a legal team.

    4. Next you organize limited partners from your group to get together with limited partners of other groups to go to the broadcast media, meaning, television (Global news, the National or CTV) to protest outside 906 12th Avenue SW Calgary.
    Sunday, June 05, 2011 4:12:00 AM

    ReplyDelete
  19. did anyone got paid on this??I'm trying to get a response from Shariff Chandran,but sofar no luck!!!!!

    ReplyDelete
  20. I have have not been paid aswell.

    ReplyDelete
  21. As one of the investors, I am thinking it may be necessary to start a class action lawsuit to get an accounting and recovery of our money. If any other investor is interested I can set up a email account to get contact information. If any other investor has started legal action related to this building, I would be interested in participating.

    ReplyDelete
  22. Almost 10 months since this building was sold.
    Wonder how many investors STILL have not received their money?
    RIDICULOUS!

    ReplyDelete
  23. Agreed, it is ridiculous. I haven't heard anything about Pemberton/Sunpark proceeds. Am contacting the ASC now.

    ReplyDelete
  24. AnonymousJan 18, 2012 10:42 PM

    To All Limited Partners of Platinum and Accolade Equities Inc., past and present of all projects, please join our litigation group by emailing

    first, your contact information to

    sue_chandrans@yahoo.com.

    We shall advise you of what to do next after receiving your email first.

    ReplyDelete

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