Class Action Lawsuit Against Platinum Equities
Links in the News:
Sept 15 2012: Platinum Equities faces ASC hearing -Calgary Herald
Sept 14 2012: Calgary firm raised $58-million while misrepresenting facts to investors: regulator – The Globe and Mail
Sept 14 2012: Alberta regulator accuses real-estate syndicator of illegal distributions – Canadian 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 2012 –Alberta Securities Commission – Notice of Hearing on Platinum Equities –Alberta 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 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. (
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 more09/11 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
There was a meeting amongst Platinum investors December 11th at the University of Calgary. It was well attended with over 100 investors there. Next meeting we have I will post on this site so we can get more investors in the loop. Currently the lawsuit that the Dominion investors have against Platinum appears to be going very well for the investors. Hopefully this lawsuit helps pave the way for other investors of Platinum with their respective investments.
ReplyDeleteWhen was the lawsuit started ? How much has it cost so far ? Going well how ?
ReplyDeleteI am an advisor, I have a few clients invested in Platinum projects and am finding it difficult to get straight answers from Platinum. Is there anyone I can talk to that can update me so I am aware of what is going on with Platinum.
ReplyDeleteplease email me at hhsetyoufree@gmail.com
As you can understand , we are leary of spilling all our beans to someone we do not know or who is not invested in one of the projects.
ReplyDeleteChances are that you are working FOR Platinum trying to get the upper hand with information.
Does your client not keep you up to date on what is going on?
What is your name? What is your role with your clients? Were you involved in sales with Platinum? Or are you involved in sorting out your clients portfolio? Who is your client? Could you have them email me to confirm your role?
hildenbrand_doug@hotmail.com
I'm thinking we challenge Chandran to prove he's not a Mamdani, Humenik or Aurora. Let him get our mortgage renewed, and then demand an audit once we know we are clear. In the mean time, is there any other large private owner of real estate we can seek for best advice? I heard from some friends that Butt and Mamdani were chummy through the Concrete dealings in secret. Make me nervous.....
ReplyDeleteHow can a letter dated Jan 26 "forcing" partners to vote on a due date of Friday Jan 28 2011 (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.
ReplyDeleteWith stuff like this going on, why aren't people making more noise with the ASC!!
ReplyDeleteLegitimate contractors are being denied payment for legitimate services. Investors are not being paid their distributions. Mortgages are being put on properties without the LPs knowledge. The PE principals are living a highly luxurious lifestyle.
ReplyDeleteIt is time that the scamming STOPS!!!
The next hearing date for Court Action #1001-18286 Dominion Place Investors vs. Defendant Multus Investment Corporation (General Partner/Shariff Chandran) has been rescheduled for next TUESDAY,FEB> 15, 2010 @11:00 a.m. at Court of Queen's Bench, Calgary. Address is 601-5th Street S.W. (SW corner bldg). A preliminary audit/review of Qualia V LP books has been completed and we expect to hear the results of this review since the Auditor has filed a report with their findings to date.
ReplyDeleteFurther motion applications by legal counsel on behalf of investors are also expected.
Investors are encouraged to hear and see for themselves the FACTS.
Makes you wonder...
ReplyDeleteCanadian commercial real estate reborn in 2010
STEVE LADURANTAYE — REAL ESTATE REPORTER
Globe and Mail Update
Published Monday, Feb. 14, 2011 10:33AM EST
The commercial real estate market saw an unprecedented recovery last year, with investment growing 48 per cent as the economy improved and investors returned to the market.
Canadian commercial real estate volume reached $18.9-billion in 2010, according to CB Richard Ellis, from $12.7-billion in 2009. That’s close to the pre-recession peak of $19.8-billion in 2005.
Certainly does! Wouldn't the last 2 years have been a good time to do what was promised ie Greenwich: bring in services and roads at a time when services may have been cheaper and have everything ready for prime time selling. So where has all the money gone ie mortgages against the property. What has it been used for. Certainly does not appear to have been used for the development and preparation of the property.
ReplyDeleteHow valuable are ANY of the properties if mortgages have been taken against them!!!!!
We quite agree on the fact that the Greenwich should have been developed in time for prime time selling. This was not done because there is scamming going on. With 2 mortgages and a lien on Greenwich, the value is less attractive because the PE principals are ripping us off!!!!
ReplyDeleteUnable to post this comment on the 1111-11 Ave section for some reason. Is anyone else having issues posting in certain sections of this blog?
ReplyDeleteFurther thoughts on the recent offer on Eleven Eleven LP.
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.
RE POST in Dominion: ONCE AGAIN FOLKS, ALL THE PROJECTS MUST LITIGATE AT ONCE.
ReplyDeleteQuite 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.
Too bad we can't get this type of positive information from Platinum Equities....
ReplyDeleteBeltline 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.
As Kierkegaard elegantly pointed out-
ReplyDelete"There are two ways to be fooled:
One is to believe what isn't so; the other is to refuse to believe what is so."
The next hearing date for Court Action #1001-18286 Dominion Place Investors vs. Defendant Multus Investment Corporation (General Partner/Shariff Chandran) is scheduled for TUESDAY,MARCH 1, 2011 @1O:00 a.m. at Court of Queen's Bench, Calgary.
ReplyDeleteAddress of the Court House is 601-5th Street S.W.
Justice LoVecchio will be presiding.
Further investigation by outside accountants into LP original 2009 financial statements and re-stated 2009 financial statements (October 2010), extra mortgages and related party transactions has been approved/ordered by the court as a result of legal counsel's submissions at the hearing held this past Tuesday.
Investors are once again encouraged to attend this upcoming hearing to stay informed and learn the facts to form their own opinions.
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.
ReplyDeleteFebruary 16, 2011 1:09 PM
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.
ReplyDeleteYour attendance would be appreciated.
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.
ReplyDeletea step in the right direction.couldn't come at a better time.
Doug
Securities regulators taking more misconduct cases to court
ReplyDeleteBy Kim Guttormson, Calgary Herald February 23, 2011 7:51 AM
Securities regulators across the country - including Alberta's - are taking more cases of misconduct to court in an effort to respond to public demand for tougher sanctions, the CEO of the local commission says.
"They wonder why they're not seeing jail sentences for people who have committed fraud," said Bill Rice, CEO of the Alberta Securities Commission and chairman of the national Canadian Securities Administrators (CSA). "It's more difficult to go through, the criminal courts, for a regulatory agency, but I think we're all feeling some pressure to demonstrate some stronger sanctions, particularly in respect to real fraud."
In its 2010 enforcement report released Tuesday, the CSA said there had been an 83 per cent increase over 2009 in the number of cases brought before a provincial court judge rather than a securities panel.
In those cases, fifteen people were given jail terms - including Calgarian Robert John Sellars who, after being found guilty of lying to investors, received a two-year sentence and was ordered to pay restitution of almost $2 million.
Rice said the ASC has decided it will be taking more cases before the provincial court.
"We will test that process over the next few years," he said, adding there are difficulties with the court route over their own administrative tribunals - notably the lack of evidence acquiring powers and a higher burden of proof. "It's a more challenging process, if you wish to achieve a criminal-style sanction, by way of a jail term.
"We're going to try and see if we can have success, see if we can move the process along and try and satisfy that demand on us to provide some stronger sanction."
He added that despite the added challenges, leaving the cases to provincial or federal prosecutors, "who have other priorities," isn't always the best route either.
"There's a sense we have to demonstrate stronger sanctioning and probably have to take on more responsibility for it ourselves as securities regulators," Rice said, speaking for the ASC. "We don't feel we're seeing results from matters that have been simply left to the police and to prosecutors outside of the regulatory environment."
The CSA reported 64 cases overall were concluded in 2010 through court proceedings, up from 35 the year before.
It also said two-thirds of all cases investigated involved illegal distributions, mirrored by the ASC which says those are also the majority of its cases.
"We feel we're having some success in spotting things at an earlier stage and certainly success in pursuing them," Rice said, adding they are also focusing on insider trading cases, with eight concluded here last year of the 13 listed nationally. Two other cases were launched last year. "We are pleased we've had success pursuing illegal insider trading, acknowledging these matters are hard to detect, difficult to prove and to prosecute."We've felt it's an important issue to face in our market."
Last year the ASC levied $6.5 million in penalties, compared to $3 million in 2009.
kguttormson@calgaryherald.com
© Copyright (c) The Calgary Herald
I do care to see what is going on with other projects, but I am quite capable of reading about it on the appropriate page.
ReplyDeleteThe tales of woe spun by Platinum don't jive too well with factual info. The bulk of the problem doesn't seem to be the recent recession....
ReplyDeleteFrom Collier's Q3 2010 Downtown Market Report: Office space absorption and leasing activity in the downtown Calgary office market has exceeded expectations thus far in 2010. As at the third quarter of 2010, we have seen positive absorption climb to 1.2 million square feet, which pushes Calgary toward one of the strongest growth years on record. Absorption exceeded 550,000 square feet in the last 3 months alone. The outlook in 2009 was dismal for landlords after a year of significant downward pressure on rental rates, resulting from reduced office space demand and the increased availability of existing and new office space, but 2010 has seen a resurgence of demand and a corresponding increase in leasing activity in the downtown office market.
The report is referring to the absorption in Class A buildings, meaning all the new buildings that came to market last year. They are not mentioning Class B or Class C buildings that are below $12 rates. Might want to take a closer read of the reports. Still pretty good news that at least the market is on a rebound but might not want to believe everything you read.
ReplyDeleteI can't make the court proceedings tomorrow but would like to be informed of the factual outcomes (no speculation or unfounded opinions). Could someone please post what transpires tomorrow at Court of Queen's Bench?
ReplyDeleteThanks, Brian Walters
bwalters@shaw.ca
Seems that various comments seem to disappear. I guess we don't have "free" speech here with someone sanitizing the site and removing comments of others.
ReplyDeleteToo bad.
Certainly does seem that way.
ReplyDeleteMy guess is that your post and mine both get deleted, as I am sure Big Brother won't like them very much.
is this unbelievable or what!!!!
ReplyDeleteFebruary 25, 2011
To: The Limited Partners (the “Limited Partners”) of Qualia Real Estate Investment Fund V Limited
Partnership (the “Partnership”) and the Shareholders of Building 906 Registered Investments Ltd.
Re: Offer to Purchase Dominion Place
Please be advised that the General Partner has received an offer to purchase the property for $30,000,000 dated
February 22, 2011 from TRL Management Ltd. A response on the offer must be delivered prior to March 11, 2011.
We estimate that net proceeds to Limited Partners following all closing fees, broker fees, legal fees related to the
ongoing litigation brought against the Partnership by William Monteith and Pyramid Dental Group West Inc.
(collectively, the “Plaintiff”), repayment of the first mortgage and accrued construction and leasing expenses would
be approximately $67,063.73 per unit held in the Partnership.
Please note that this calculation is an estimate only and is subject to change based on final closing adjustments.
Further adjustments will need to be made for any additional legal fees incurred as a result of the legal action brought
by the Plaintiff. We understand that counsel for the Plaintiff will be making an application for a receiver to be placed
in control of the property. Should this application be successful we anticipate that TRL Management will withdraw
their offer and any other potential purchasers will abstain from submitting offers in hopes to acquire the property
through a distressed judicial sale.
Given the circumstances surrounding the litigation brought by the Plaintiff and the pressure being applied by the
current lender, it is the General Partner’s strong recommendation that this offer be accepted.
Yours truly,
MULTUS INVESTMENT CORPORATION
Shariff
Lets get our money out! I am tired of this legal bullshit!
ReplyDeleteThe investors that think Vogeli is working to help us have definitely got it wrong. The letter that he sent out is full of speculation and allegations to try to keep this litigation going and paying his legal bill. We have an opportunity to sell the building and make a healthy profit. If a receiver is placed into this situation, we will most definitely destroy the equity. I sent in my vote and I sure hope we sell this building so we can see something positive happen here.
ReplyDeleteThe letter from Chandran speaks of the balance to shareholders after paying of the 1st. mortgage. He neglects to mention the additional mortgages which may amount to $3.1 million. He states that the final adjusted price may be different which opens the door to more creative bookeeping and manipulation of shareholders. Please note that he states that a law suit is in process against the Partnership. This is inaccurate as the law suit is against the General Partner. The cost to defend any legal action are costs of the General Partner, not the Limited Partners. Please do not vote hastily but demand a full accounting and guarantees as to the minimum amount which the shareholders will receive under this offer. Remeber that you have been trying to get such an accounting and even with the court orders you still don't have it. Have the offer reviewed by and independent third party. Yes, you just want to get some money back and move on but history has shown in this and in many other Platinum investments, all is not what it seems and you really have no guarantee of anything. To simply vote to accept this offer without further detailed information, is to stick your head in the sand and hope for the best. I understand that you are tired and fed up but is that reason enough to allow unscrupulous people to do what ever they want with other people's money. I, for one, don't think so.
ReplyDeleteI disagree this is a public document, they have to file this in court. If the amount is off by anymore then a few thousand dollars either way without the sufficient backup they are exposing themselves unnecessarily. The sale gets our money back in our pockets. Those that want to continue with the litigation can do so on their own after the sale is done. It doesnt stop you from continuing the litigation. Why would you interfere with the sale and the opportunity for the rest of us to get our money back. This is very selfish of a few to effect the financial result of the other limited partners. I strongly feel that we are better of selling and allow the ones that want to litigate to continue. I too want my money back.
ReplyDeleteI do not trust anything that platinum says, we need to continue to find the truth. We vote to sell and we we don't now the exact figures , we will get screwed by platinum.
ReplyDeleteAnyone know of any action on Leben REIT ?
ReplyDeleteAnother platinum investment that gives no info and has been stalling for a year.still waiting for my share & debentures in Whiterock .
Any help would be great
Dear Investor,
ReplyDeletestill waiting for your share of the sale of leben reit buildings to whiterock? You should have formed a group of leben investors and file a lawsuit against platinum equities and its principals for your money. You have waited too long! This sale occurred since 2008. What are you waiting for? Til all the money is gone? That is very stupid and dumb!
If we don't vote to sell the "exact figures" will be less than half of what they would be if we sell now.
ReplyDeleteI agree, let the litigation continue after the sale if you want.
I want this sale to go through so I can get my principal plus profit and then I will look forward to the audit results. I believe the return will be close to the projections, it was very close when my other investment with Platinum was sold.
I need my money back more than I need blood right now.
Ever heard the saying; Bulls make money, Bears make money but Pigs they get slaughtered!
ReplyDeleteThe principals of Platinum Equities are creating bad and evil KARMA for themselves by scamming. KARMA means what goes around comes around.
ReplyDeleteNot sure who the "pigs" are being referenced here but certainly hope it is not investors.
ReplyDeleteRemember another old saying that a leopard does NOT change its spots?
If you think that you will be getting the $67K without further enquiry and legal examinations you are foolish.
It is the pressure from the "Legal Circus" that keeps being referred to that brought you this proposal to sell the Dominion Building in the first place.
Read between the lines-who do you think this great offer is coming from?
Do you know that an offer is not a SALE?
Could this be yet another "stall" tactic?
These questions and concerns and others are why we need legal representation to make sure it IS a legitimate offer and make sure that it will go through and investor distributions will be maximized and preferably NOT with this GP overseeing it but the courts or at the very least a neutral third party/Trustee!!
Why do you think we got the offer on the same date (deadline)that Chandran was ordered by Justice Horner to reply to the auditor's questions?
Coincidence?
Do you know that the INDEPENDENT audit is pretty much only for one year so far and from what we hear millions are still unaccounted for?
Does it not concern you that the 2nd and 3rd mortgages toalling $3.1 million registered against our building are not even mentioned in the General Partner's "Calculation of Distributions to Investors???
What about Riaz Mamdani's Right of First Refusal Agreement to purchase our building that is in place?
What is the $1.5 million in estimated and accrued expenses etc?
Are you willing to pay Mr. Chandran $315,000+ from proceeds of the proposed sale with so many questions still unanswered, the existence of amended 2009 financial statements we have never even been provided and other outstanding and important issues?
Are you not curious in the least but just willing to accept Mr. Chandran's "numbers" at face value and accept not being provided any real details from him or even an appraisal certificate as to our building's value?
This is truly AMAZING to say the least!
So before you start slagging out those few who took their blinders off and decided to confront the reality of problems with this particular Limited Partnership, perhaps you need to understand that the only way to get to THE TRUTH about how and where our money has been used or an understanding of this LP's financial situation is and has been through LEGAL action.
Chandran certainly would not offer any information or proper disclosure any other way would he?
Even with legal action he apparently still resists.
YOU SHOULD THANK THOSE WHO PUT THEIR MONIES and NECKS ON THE LINE FOR THOSE OF YOU WHO CONTINUE to complain about the legal cost of which I doubt you have contributed towards BUT certainly can and do reap the benefits from!
I and others are now to the point where we wonder how many postings are not even from legitimate investors but instead coming from Platinum's office/management in an attempt to ensure investors fight among themselves instead of focusing attention on the actual issues which are their investments.
Every investor is entitled to their opinion but perhaps instead of wasting time arguing with one another here we should all be rushing to Chpters/Indigo to pick up and read a copy of Sun Tzu's "Art of War" to keep up to speed with Chandran!
MORTGAGE FRAUD IS
ReplyDeleteINVESTIGATED BY THE FBI
Mortgage Fraud is investigated by the Federal Bureau of Investigation and is
punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is
illegal for a person to make any false statement regarding income, assets, debt,
or matters of identification, or to willfully overvalue any land or property, in a
loan and credit application for the purpose of influencing in any way the
action of a financial institution.
Some of the applicable Federal criminal statutes which may be charged in connection with
Mortgage Fraud include:
18 U.S.C. § 1001 - Statements or entries generally
18 U.S.C. § 1010 - HUD and Federal Housing Administration Transactions
18 U.S.C. § 1014 - Loan and credit applications generally
18 U.S.C. § 1028 - Fraud and related activity in connection with identification documents
18 U.S.C. § 1341 - Frauds and swindles by Mail
18 U.S.C. § 1342 - Fictitious name or address
18 U.S.C. § 1343 - Fraud by wire
18 U.S.C. § 1344 - Bank Fraud
42 U.S.C. § 408(a) - False Social Security Number
Unauthorized use of the FBI seal, name, and initials is subject to prosecution under Sections 701, 709, and 712 of Title 18 of the United
States Code. This advisement may not be changed or altered without the specific written consent of the Federal Bureau of Investigation, and
is not an endorsement of any product or service.
Mortgage Fraud
ReplyDeleteTo wilfully overvalue land or property at the expense of legitimate investors.
Misrepresentation
To wilfully defraud.
"It is illegal for a person to make any false statement regarding income, assets, debt,
ReplyDeleteor matters of identification, or to willfully overvalue any land or property, in a
loan and credit application for the purpose of influencing in any way the
action of a financial institution".
Question: What if there is no "financial institution" involved per se but a private lender who may also be the vendor of the building?
Also, don't normal financial institutions/lenders conducting their due diligence on mortgage applications for commercial real estate require copies of building operating/cash flow statements, leases and accredited appraisal certificates to determine whether building values represented by mortgage applicants are accurate and the mortgage amount requested is reasonable and warranted?
If these "normal" lending institutions are not always being used when they have built in checks and balances to minimize mortgage fraud and provide necessary security for the lender and any investors, then what?
What/where are the "checks and balances" available for investors in such a scenario?
I, plead the 5th Amendment on the grounds it might incriminate you, although you may have already incriminated yourself.
ReplyDeleteWhen is the next trial date for Dominion vs Chandran?
ReplyDeleteRather, when is the next trial date for Dominion vs Multus?
ReplyDeleteMaximum fraud, maximum time!!!
ReplyDeleteWho says we have lost any money, this is a lot of speculation. I invested in Concrete and I dont see any money from what the receiver did there or the new GP. I invested in Shire and that is a complete write off. I invested with Fairmont and I havent seen anything there. The last I checked this is one of the few investment I stand to have my principal returned and on the other project make a profit. Be careful for what you wish for, I lived the disaster at the other companies that went into receivership and the only people who got paid were the receiver and the lawyers. Anyone who were investors in the other companies can verify that.
ReplyDeleteI did not invest in any of those other company's, but your post has been a bit of an eye opener for me.
ReplyDeleteI have been guilty of thinking that our situation is as bad as it can get, and I am sure many of those posting and reading this forum have thought the same.
I sympathize with your situation, and in some ways am actually greatful that my investment was made with Platinum and not those other company's.
I still have my concerns, but if I had invested in Shire (which I came very close to doing), I would be much worse off.
Signature Capital and Shire had development projects(no cash flow), the investments were different and definetly vulnable in economic downturns. Platinum and Concrete are the same types of investment structures which have cash flow, thus making it easier for these types of investments to overcome or prolonng their existence in economic downturns. The problems start when they start to over leverage the properties with mortgages(in many cases without the permission of the limited partners as per the LPA). When mortgages come due and the values that were inflated to begin with aren't there, the problems start as we saw with Concrete and is now happening with Platinum. Mortgage companies WILL NOT lend when there are liens and other mortgages outstanding on the buildings.
ReplyDeleteThe above post seems to imply that Shire went under soley due to the economic downturn.
ReplyDeleteMakes me wonder who made that post.
Actually makes me wonder why attention once again is Shire or any other investment company for that matter.
ReplyDeleteAren't the issues here Platinum?
These actions by Platinum GP and principals are all ripoffs to LPs.
ReplyDeleteWake up and smell the coffee! Stop hiding your heads in the sand!
Take action to get your principal and profit out of these scams! File lawsuits.
Go to your local police station and RCMP office.
If the Platinum GP cannot appear in court trial when he is summoned by the law, he must have a lot to hide from LPs investors which he does not want to answer for because he already took the money.
ReplyDeleteDo you need to get hit in the head to realize what is going on?
Any new information on Glenmore & Centre. Apparently the property was not even purchased as
ReplyDeleteyet.
Anonymous said...
ReplyDeleteEnron management and Arthur Andersen auditors lied to Enron's pensioners and investors, thus stealing their money.
Arthur Andersen went under for lying.
Enron's Ken Lay died in prison and the other management team who lied are still in federal prison where they should ROT!
Did Enron employees who lost their pension knew the Enron management was going to steal from them? Management gave employees pension in Enron stock and said these stocks are good in Enron. Meanwhile, management was selling their stock in Enron. The same applies in this situation. It was all LIES AND DECEPTION, cover-ups and STEALING which equals big time fraud.
Saturday, March 12, 2011 10:32:00 PM
LPs get your money out of Platinum Equities. Do whatever it takes! File lawsuits, go to your local police station and go to the RCMP.
ReplyDeleteSaturday, March 12, 2011 10:36:00 PM
ReplyDeleteKenneth Lay died while he was on vacation, not in prison. Enron and what is happening here are two different situations. The lawyers and accountants in the Enron matter all received payment in full for a result that did not matter to the shareholder. There are assets here for the funds we invested not some public company which will become a shell that has no assets to recover. I am not picking a side, I want to be rational and figure out how we can get out of this situation. I agree with most investors that we have an opportunity for us to receive our investment back, the alternative is a lenghty legal battle. I feel better with my investmemt being returned, just my 2 pennies.
Go to your local police station and RCMP office in Calgary and state you are out a number of thousands of dollars. This should help your case.
ReplyDeleteYou have nothing to hide.
With regards to the post on: Friday, March 11, 2011 4:27:00 PM
ReplyDeleteI find that interesting. Regardless of the fact that those investments with Shire and Signature had no cash flow, I guess the bigger problem was that there was no assets for the $ that was invested either!Why are we even bringing them up? The big scandal there is that no one is going after the principals there as there are no assets! I had invested with them as well, and I just want to get my $ out now on this one.
Re: 7:34 Post.
ReplyDeleteYes the issue here is Platinum, but many also invested in Shire and even for those that didn't, their experience can provide valuable insights for us.
It also provides us with a frame of reference, as our situation could be much worse.
to March 14, 2:49-how can this be worse than Shire??-if you lose all your money, you lose all your money.I think this blog has outlived its purpose.
ReplyDeletethere is sure a lot of postings out there by folks who want to shut down this blog. I think this blog is very valuable and gives folks a route by which to relay information and vent. The only people I can think that would want this blog shut down would be the GP's so I say keep the comments coming
ReplyDeleteScammers want to shut down this blog because LPs are speaking out about PE principals and cohorts who are out to steal LPs money.
ReplyDeleteThe truth hurts!
ReplyDeleteIn reply to March16, 10:40 AM. You are right, that is why I think some of the inflamed comments here are made by the GP himself. NO one is happy with their investment situation in Platinum and needless to say some of the commentary here cleary is indicative that someone from Platinum's camp is posting. For anyone who wants to understand Chandran's true colors, look closely at what is happening with the Dominion LP and how he is trying to squirm his way out of answering normal accounting questions. He was in contempt of court a week or so ago and continues to refuse to provide answers. Geez and we should believe in any thing he says or promises? Remember even if it's on paper doesn't mean it will be so! We all signed legal documents with rights attached to them and yet we still have to go to court to fight for these same rights that are ours. The only reasons there are offers coming in on some of the LPS is because Chandran does not want to face having to answer the same questions of why there are countless extra mortgages on properties that limited partners never approved. So for some of you nay sayers who think the legal process is all about paying lawyers and getting no results, think again. If all investors united, it wouldn't be so hard on the few who have and perhaps we would have taken larger strides in having justice for all investors. So if you get contacted by one of your co investors, please listen and give what you can, you will be amazed at how much further we can all go as a group.
ReplyDeleteAnonymous said...
ReplyDeleteTo post Sunday March 13, 2011 6.26 AM
You can't money and profit out of Shariff's ass because all he has for LPs is shit up there!
Meanwhile, he is enjoying LPs money, hiring expensive lawyers and giving LPs a bunch of BULLSHIT to hold!
Wednesday, March 16, 2011 11:50:00 AM
Perhaps some of these posts are being made by the GP, nevertheless if someone has the opinion that an all out war might not be in our best interest you should respect that opinion, even if you disagree. Its not right to call that "inflamed".
ReplyDeleteInvestigate (ASC & RCMP) the link between Chandran & Mamdazi (Riaz) in Leben and most of the Platinum LP's. Head leases where there shouldn't be any. Illegal structure of the Leben REIT. That's where the really bad stuff is, the stuff Chandran doesn't want anyone to find out about.
ReplyDeleteWe should have a Forencsic Mortgage investigation like the one in the US... To catch all these suckers.
ReplyDeleteQuestion is , From whom did they buy those buidlings?????? Friends, relatives, wealty individual who gave huge commision so they can dump their properties to investors and take away their problems????
We can still get Canadian Forensic Accountants to do the mortgage investigation by order of BIG TIME Canadian law enforcement. If that is what you mean and want, so shall we get them.
ReplyDeleteIs there someway we can receive a list of the LP's in our own particular investment? I have heard this should be available to us. Everything on here is anonymous which gives us no way of making common concensus of our individual investments. I only know of one other individual in what was sold to us as
ReplyDeleteGlenmore & Centre which I can't even find out any information on. We are not listed either
as a sold out syndication or as a syndication
period. Anyone any information?
There is a reason people are anonymous. Chandran loves to sue people!
ReplyDeleteIn answer to the question about where the buildings came from, Platinum went through normal channels (ie: listed buildings) to purchase them. Don't forget this was all pre-financial crisis when companies like Merril Lynch and MCAP were in the commercial mortgage business.
ReplyDeleteNo that is not true as many of the properties that Chandran flipped over to investors were purchased from Riaz Mamdani. Many investors I have spoken to have done title searches and Riaz Mamdani has his finger prints on them. Not only is he the seller in some of them but also the lender.
ReplyDeleteI am sorry, this seems to be a big conspiracy theory here. Calgary real estate is a very small community. If you are in real estate in Calgary you will always run across the same people buying and selling. I think we as investors got caught on a downturn and that its easier to just blame everything on some massive scam. If the market was up and and regardless of the accounting issues we wouldnt be complaining we would be collecting our cash even if we over priced the sale to someother group. That is human nature. We never questioned the audits before the cashflow stopped, then we asked him for an audit and now he says he is going to get the audit completed and then we say that we dont want to pay for it! That tells me we do not have our investment goals aligned and I should look for an exit. I am in a majority of projects at Platinum and been to most of the meetings. Unproductive and totally utter waste of time. For godsake make up your mind, you want out but you want to vote against the sale, if the sale doesnt go through we must come up with more money for the lawyers. We think there is a big conspiracy between Chandran and Mamdani. Guess what? Do you think this blog is going to get our money back? Do you think these guys are afraid of litigation? I dont see how we get in a better situation voting against sales and engaging lawyers to litigate. All of the sales are above the appraisal value, do we think we can do a better job selling a building then Colliers or CBRE can? Did anyone ever read the partnership agreement when they invested? Now we have a small group who have their own agenda at the cost of the rest of us. I am happy to vote against the sale but lets put our money into the building in order to get a better return, I dont think the return on investment is greater investing into a lengthy lawsuit and paying for audits. The receiver will suck every penny of equity out of these buildings, look at what happened to Concrete. The majority of post here seem to be from the same people, frankly depressing reading this shit!
ReplyDeleteIt is very clear to those of us who have attended investor group meetings that the above post is from Platinum's camp. A continuation of insulting the investor's intelligence and trying to create dissension among investors.Despite countless requests for meetings by investors Chandran still refuses to meet but instead as the coward that he is, hides behind webinairs and better yet the "mailman", sending letters intimadating and arm wrestling investors into getting the resolutions that he wants. And of course for a bit of assurance to make sure that his plan is being executed he and his 2 buddies(Steve and Glen) post on this blog. After much research, those of us in groups have found enough evidence that indeed prove that Chandran and his silent "partner" Mamdani are in bed together in this whole Platinum fiasco. Trying to make it sound like we are all sore because of a market downturn or better yet not understanding that the Clagary "commercial market is small" and thus explaining his relationship with Mamdani is just further proof that this is from Platinum. TRUE INVESTORS who post DO NOT IGNORE NOR TAKE LIGHTLY all the extra mortgages that Chandran has taken out on several LPS. Yes we know Chandran likes to litigate and we know that lawyers cost money, but he will pay! Chandran and Mamdani unlike Concrete Equities are NOT POOR. Better yet, once Chandran is removed as GP from all of Platinum"s investments, it will be interesting to see just how litigious he will be once he has to actually pay for his legal bill out of his pocket. So for those of you who are confused as to what to believe on these posts,do your research and you will come to see just how easy it is to pick through the garbage. Whether it's the ASC or through lawyers, the truth will come out.
ReplyDeleteYes and that is why we are getting money back instead of not receiving any money at all! Please stop with the B/S! We can go around for hours about the stories, fact of the matter is majority of us want out and that is the best solution for all of us to be able to sell. An exit now with money or pay more to get what? The unknown? Is the lawyer going to get us our money? Or is the ASC going to get us our money? Is the RCMP going to get us our money? Are you willing to put up your money? Guys like Chandran and Mamdani have more money then me and I am happy just getting my money back.
ReplyDeleteAgreed they have more money, but eventually it runs out, they will get sued left and right, until nothing is left. That is how it works.
ReplyDelete1111-11 building is being sold check it out on Barclay Realty
744 investors voted no to cash call, or didn't vote at all 6.67% voted in favour so people are starting to figure these guys out.
I am still waiting for my Whiterock units and debentures from the Leben sale, anybody else in the same boat? Have the suspicion they used the proceeds for something else.
Someone posted that Chandran didn't show in court? How is that possible? How arrogant is this guy?
Caveat Emptor......... indeed.
He is not only arrogant because he has all Limited Partners' money but he is also shady and dark.
ReplyDeleteI find it infuriating that any time someone posts an opinion that is contrary to the opinion of the most common poster on here they are immediately accused of being Chandran or one of his buddies.
ReplyDeleteThere are a lot of different investors here and some of us may have different opinions than you. You need to learn to respect that.
PE salespersonnel said the Greenwich Park Investment was oversold. Yet Shariff sends Greenwich Park investors a letter saying the property was undersold, hence, the reason for 3 mortgages on the Greenwich Property and a lien for $49,000.
ReplyDeleteShariff, why did you not pay the IBI Group the money that is owed when you collected millions of dollars from Limited Partners?
Please provide Greenwich Park Investors proof of each and every one of your transactions for the mortgages you put on the Greenwich Park property.
ReplyDeleteWe do not believe a word you said in your letter.
We want to know where each penny went from the money you collected from Limited Partners. Then and only then after verification, would we believe anything you say.
Until such time, your credibility is ZERO.
rusty1 said...
ReplyDeleteThere seems to be a discrepancy with the treatment of Leben REIT investors. Some had received Whiterock shares and debentures and only a small portion of the initial value of this deal was eventually transferred to the Raymond James account (approx 22% of original investment). Only Whiterock shares were transferred though Platinum had been issuing distributions on the Whiterock shares and debentures for a short time. Other investors have received no Whiterock shares.
Also - the pub was supposed to be the final building after the $80 million deal with Whiterock . It now appears that the Franklin building (a separate Platinum project) is being financed by Leben.
Monday, December 20, 2010 1:15:00 PM
Anonymous said...
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
Monday, February 21, 2011 11:17:00 AM
Anonymous said...
ReplyDeleteTo Posting Friday March 25, 2011 1.08PM
Just remember who is paying your salary. It is not Chandran, it is the Limited Partners. We are paying Chandran too, except he wants to keep it all to himself, his family and his co-conspirators.
Friday, March 25, 2011 7:07:00 PM
I WAS a friend of Chandran's and invested in the Leben REIT. My old buddy won't return my calls. I still haven't received a dime from the sale of Leben to Whiterock, nor have I received any shares. The lack of communication is DISGRACEFUL! And, on top of everything, Chandran built a mega house for himself in Mount Royal off the gains he made in Leben. Chanrdan is a cockroach, plain and simple. His rules are he wins, everyone else loses. How does he get away with this kind of criminal activity? He better hope his Bentley has bulletproof glass.
ReplyDeleteTo Posting Monday March 28, 2011 10.50 AM,
ReplyDeleteYes, he is one of the lowest forms of life on this earth, worst than a cockroach!
Leben REIT sale gave Chandran $81 million dollars and it is a shame that you did not get a piece of paper (shares) or a penny.
In order for him not to get away with this criminal activity, you must get together with the other Leben holders and file a lawsuit and do a forensic audit. That is the only way you will get compensated.
Also go to the RCMP and your local Police in Calgary and let them know what happened to you.
A forensic audit will get you money back?
ReplyDeleteChandran got $81 million, what an idiot! Why is he still here?
Portfolio was sold for 81 million the actual proceeds that was to be distributed to investors was just over 22 million. The difference between the 81 million and the 22 million went to pay the mortgage debt on the properties, with many of those properties having also been over leveraged. Mamdani and Chandran have pocketed most of the 22 million+ with only a few investors who obviously yelled loud enough received some money but nothing near their original investment. Many have complained to the ASC and I would encourage those who have not yet done so to do it ASAP. We need to make sure the ASC acts swiftly and accordingly.
ReplyDeleteLook, our GP of PE is just a leech, parasite who is scamming us, Limited Partners.
ReplyDeleteLet's all get out of this wretched mess and nightmare.
Regarding the letter received from Platinum Five Acres and a Mule and signed by Shariff Chandran.
ReplyDeleteHe states in the letter that the Greenwich Park Investment was unsold, hence 3 mortgages and a lien was put on the property. This is a lie because PE sales personnel all said that the Greenwich was oversold which means more money was collected than anticipated. Thus there is no need to pay for the land with any mortgage.
Secondly, Shariff said he took the mortgages to get a Line of Credit from Riaz's Thoburn Capital Corporation to purchase the surrounding lands. This was done since 2010, yet I know of no such surrounding lands being purchased. Where is the $10 million and what was it used for?
Why can't the GP get the financing from a proper and legal financial institution? Because GP is using Limited Partners funds for his own use and now Riaz has a hold on the Greenwich Investment.
If PE goes bankrupt, Riaz gets the assets, Shariff gets the cash and the Limited Partners are holding a bag of SHIT.
IBI engineering group was not paid $49,000 in spite of the millions of dollars collected for the Greenwich Investment. WhY not?
Joint Venture Partnership to develop the Greenwich is a dream with someone's bad reputation hanging like a rotten cloud over the Limited Partners project.
How many Leben investors are there who are still waiting for Whiterock shares and debentures?
ReplyDeleteI wonder who has such a bad reputation in Calgary??????
ReplyDeleteI am still waiting for my units and debentures from Whiterock. Doubt I will ever see them. I know others aswell. We have missed some nice stock splits because of the lies. All the ASC and the RCMP will need to do is check when Whiterock transfered the units and debentures, and whether Leben/Chandran distributed them or just kept them and sold them, pledged them whatever. There will be a history from the transfer agent. Missing monthly Whiterock distributions you are entitled to aswell. Yo Chandran, since you are so damn smart and read this blog do you know what securities fraud is?
ReplyDeleteOh almost forgot....Embezzlement.
ReplyDeleteWhat an appropriate term, embezzlement!!!
ReplyDeleteEmbezzlement...the misappropriation or stealing of assets and funds held in trust!!!
To Posting Tuesday March 29, 2011 8.41PM
ReplyDeleteWhen you do get your share certificate, make sure you get compensated for the stock splits value and for your total distributions owed.
Leben/Platinum investors who are interested in setting up a group to get our money back from Shariff and taking this to the media email
ReplyDeletelebenslemons2011@hotmail.com
Share certificates? Ha, won't be seeing those anytime soon. 21 Million in units and debentures just doesn't disappear, there is a transaction record for all to see. No accidental mortgage excuse for this one. How you going to explain this in court Sri, Srivassan or whatever the hell your name is? Where is my money braa?
ReplyDeleteAnonymous said...
ReplyDeleteLeben/Platinum investors who are interested in setting up a group to get our money back from Shariff and taking this to the media email
lebenslemons2011@hotmail.com
Wednesday, March 30, 2011 8:29:00 PM
According to a new report released by CB Richard Ellis, vacancy rates have improved in Canadian industrial and office markets in Q1.
ReplyDeleteAccording to the report, the national vacancy rate for office space fell to 9.3 %, dropping from 10.1 % from this time last year. Tenants leased 704,431 square feet of space, compared with 441,310 last year.
The industrial vacancy rate dropped from 8% to 7.3%. Construction increased; 5.6-million square feet of space was reportedly being developed compared with figures from this time last year- when the figure rested in at 3.8-million square feet.
There are marked improvements in the Commercial Real Estate Market; tenant’s interest in increasing because of factors like availability of better space and better amenities. There is a marked increase in demand.
Looking at the country, region to region, IN CALGARY, Q1 VACANCY DROPPED FROM 15 % IN 2010 TO 12 % IN 2011. SUBLETS AS A PERCENTAGE OF VACANT OFFICE SPACE DROPPED to 20.6 % in Q1 of 2011 FROM 37.6 % THIS TIME LAST YEAR. The industrial availability rate showed a major drop, from 5.8 % in Q1 2010 to 4.1 %.
In Edmonton, the office vacancy rate held its’ own at 10.7%- only a marginal change from 10.6 from this time last year, although the downtown vacancy rate increased from 8.5 % in the Q1 of 2010 to 8.8 % in 2011.
In Winnipeg, vacancy rose in Q1 to 9.1 %, up from 8.5 % from this time last year earlier. The industrial market saw the availability rate fall from 4.2 % in Q1 of 2010, to 3.4 %.
Overall office vacancy rate in Toronto fell 8.7 %, down from last year’s 9.6 %. The downtown vacancy rate fell 100 basis points to 6.3 %- which signals the most significant largest single quarterly decline in vacancy since the end of 2004. This is mostly attributed to major landlords removing 300,000 square feet of available space off of the market for renovations and retrofit.
In Ottawa, Q1 office vacancy rates went up to 6.7 %, a rise from the 5.3 % the previous year. In the industrial market, overall availability increased to 6.6 %, from 5.7 % in Q1 of last year.
In Montreal, office vacancy rate dropped from 10.6 % in the Q1 of 2010 to 9.6 % in 2011. The Montreal industrial market, showed a slowdown in demand, resulting in a weak first quarter.
In Halifax, the vacancy rate, overall for downtown and suburban office space was 8.6 % in Q1, down from 9.4 % from this time last year. In the industrial sector, the overall availability rate remained relatively unchanged at 4.3 % in Q1 2011, compared with 4.1 % the year before.
Who posted this vancancy rate have improved. He is an idiot.. It will take years to pay the principal.
ReplyDeleteWe bought the property way overpriced. somebody made money off of it already. And it is not the investors... period..
Lets take action now.. before its too late. somebody should pay for all these rip off.
re CB Ellis info-and your point is what?-of what relevance are any numbers where PE doesn't have properties???(Like as an investor I really care about Montreal)
ReplyDeleteVacancy Calgary 15% to 12%
Check out the absorption with all the new buildings coming on-Encana, Penny Lane etc-sell why we can!!!!!
Who would post this article other than Chandran? Take a look at the vacancy in the Platinum buildings we invested in. That tells us the story. Exactly right, he was the one who made the money when he sold it to the LP's. No wonder he couldn't give a damn.
ReplyDeleteTo Posting Thursday March 31, 2011 11.44 AM
ReplyDeleteIf you, as a Limited Partner, bought the property overpriced, it is Shariff Chandran's friend, Riaz, who made the profit, while Shariff gets a cut off of this transaction, making Limited Partners, once again, suckers.
Now you learn a hard lesson, not to invest with Chandran or Riaz!
To Posting Thursday March 31, 2011 7.42 PM
ReplyDeleteLimited Partners are like sacrificial lambs prepared for slaughter to put money in Chandran's pocket.
Our Best Advice is to get out of all your transactions with PE!
While Chandran could not get financing to finish the development for Lucaya because the CIBC plug the financing plug because they found out a whole lot about this person, this should give potential investors, and past and current Limited Partners
ReplyDeleteknowledge as to who we are dealing with.
Lucaya Limited Partners should get their money back since $17 million was collected by PE in 2008. Pincus said the money is being held in trust by PE as per the Kelowna Daily Courier.
ReplyDeleteIt is now 2011. Lucaya Limited Partners should ask, "Where is my money? We want a refund!!!"
Limited Partners, please don't sit on your fat and lazy laurels, while Chandran is using your money for his own personal desires.
ReplyDeleteCorrection re: Posting Thursday March 31, 2011 10.12 PM
ReplyDeleteIt was the Calgary Herald who quoted Pincus and the $17 million collected by PE, not the Kelowna Daily Courier.
Maybe Lucaya Limited Partners are really out or lost their money with PE !!!
ReplyDeleteThe Calgary Herald quoted Phillip Pincus as saying that the Limited Partners deposits would be returned to them if the Lucaya Kelowna project did not proceed. This was in 2008. The project was to be completed in 2010.
ReplyDeleteLucaya Limited Partners should get a refund of their deposits as per what Phillip Pincus said in 2008.
If you google "Philip Pincus and Lucaya" you will see that what Pincus said is this:
ReplyDeletePincus said:
the deposits of buyers purchasing condo units in the project will be protected.
"Deposits get returned if the project doesn't proceed. Their money is all held in trust. They're all protected."
He was clearly referring to the deposits made by purchasers of the condos themselves and NOT LP investors with Platinum.
Did PE refund the depositors? Obviously, NOT!!!
ReplyDeleteUsing other people's money for their own personal welfare.
Philip Pincus meant Limited Partners and depositors need to be reimbursed because they got taken by Chandran stopping the development.
ReplyDeleteClearly, as GP he has not moved forward to earn anything for Limited Partners.
It is 2011 and the Lucaya is still gravel, rocks and rubble, in other words, an EYESORE to the City of Kelowna .
To Posting Friday April 01, 2011 2.06 PM
ReplyDeleteThis is called POOR BUSINESS MANAGEMENT!
Isn't he a MBA from Queen's University, walking on water? or so he believes!
It's too bad Chandran isn't being exposed in a more public forum, like the front page of the Herald. He shouldn't be able to get away with the crap he has pulled on the Limited Partners. He needs to be reminded that he is accountable for his actions.
ReplyDeleteI worked at Platinum while Chandran was taking his MBA. By the way, he had office staff doing his assignments for him! His attitude changed completely during that time, and he changed from an agreeable, rational, ambitious guy into an arrogant jerk who made it plain that he didn't care about anyone but himself, and that he would win at all costs, regardless of what happened to investors or the people doing the grunt work for him.
ReplyDeleteIn the Calgary Herald of October 18, 2008, Philip Pincus said that the subprime mortgages fiasco in the USA resulted in the CIBC stopping its financing on the Lucaya project.
ReplyDeleteHowever, if Platinum Equities financing was on solid ground the CIBC would have approved further financing of the Lucaya project.
Seeing that Chandran kept taking out "accidental mortgages" in the millions of dollars on each and everyone of his purchases whether it is building or land, resulted in Platinum Equities becoming an extremely high risk concern for the CIBC financing.
Consequently, the CIBC stopped further financing because the PE GP kept taking out mortgages of Limited Partners money from the assets, resulting in the asset being of no collateral value to the CIBC.
The only one to blame for this mismanagement is of course Shariff, Sri, Srivavasn, S.H. Chandran.
To date, Chandran has found no further financing for the Lucaya Kelowna project and has not progressed to earn any money for us, Limited Partners.
Thus, Lucaya Limited Partners should get their money back from Chandran and let us stop his nonsense on our limited partners' money.
Anonymous said...
ReplyDeleteIn the Calgary Herald of October 18, 2008, Philip Pincus said that the subprime mortgages fiasco in the USA resulted in the CIBC stopping its financing on the Lucaya project.
However, if Platinum Equities financing was on solid ground the CIBC would have approved further financing of the Lucaya project.
Seeing that Chandran kept taking out "accidental mortgages" in the millions of dollars on each and everyone of his purchases whether it is building or land, resulted in Platinum Equities becoming an extremely high risk concern for the CIBC financing.
Consequently, the CIBC stopped further financing because the PE GP kept taking out mortgages of Limited Partners money from the assets, resulting in the asset being of no collateral value to the CIBC.
The only one to blame for this mismanagement is of course Shariff, Sri, Srivavasn, S.H. Chandran.
To date, Chandran has found no further financing for the Lucaya Kelowna project and has not progressed to earn any money for us, Limited Partners.
Thus, Lucaya Limited Partners should get their money back from Chandran and let us stop his nonsense on our limited partners' money.
Saturday, April 02, 2011 10:16:00 PM
Saturday, April 02, 2011 10:19:00 PM
Chandran made the Lucaya project a subprime mortgage project in Canada
ReplyDeleteby taking out the Limited Partners money as mortgages, resulting in the Lucaya to be of no collateral value to the CIBC financing.
Do not invest with HOLZBREN CAPITAL OR GATEHOUSE CAPITAL INC.
ReplyDeleteYou know who is there!
Anyone receive 2010 financial statements yet or hear when they will be distibuted?
ReplyDeleteThey were due March 30th.
Anyone still missing T5013 and T5 tax slips for 2010?
Just got mine yesterday.
ReplyDeleteI have not received a financial statement or T5013 on my three investments.
ReplyDeleteAny body know whats going glenmore¢re we have not received any check from platinum suppose to get in jan/11 please any information?
ReplyDeleteIf you think you will get any money from them just because they say they will send it, you are dreaming!!!!!
ReplyDeleteTo Saturday April 9, 2011 4.12 PM
ReplyDeletePE did not own the Glenmore Centre. They only collected your cash. So you have lost your money with them for now. Ask them back for your investment since they did not own the Glenmore Centre.
Just another scam to steal investors' money.
Greenwich Park limited partners never got a penny of interest on their RRSP bonds. They were supposed to get simple interest annually.
ReplyDeleteChandran just using their money without compensation.
They have to report this to the Calgary police and the RCMP. Just another RIPOFF!
To writer April 14th. My understanding is that the sale of Glenmore Centre was effective March
ReplyDelete15th. I received letter to that effect along with distribution March 16-31st. I would like to know if others received same, Other previous
distrubitions still behind.
To Posting Saturday April 16, 2011 10.56 AM
ReplyDeleteThere was no sale on March 15, 2011 because there was no original purchase, only pretending the existence of a purchase to collect limited partners money to spend on your own self, family, friends and co-conspirators.
Re: Glenmore Centre. Re comment April 16.
ReplyDeleteI meant that the purchase of Glenmore Centre
by PE was completed on March 15th. Any confirmation?
You can only confirm the purchase by conducting a title search at a Registry office.
ReplyDeleteYou should also get copies of any mortgages registered on this property when you do the search.
You are a MBA and should surely know the difference between a purchase and a sale in a business transaction between you and Mamdani.
ReplyDeleteYou are only trying to confuse your limited partners.
I have invested several hundreds of thousands in with these guys in numerous projects and I must say with all the challenges Shariff is actually turning things around. He has sold buildings, getting Glenmore and Centre completed, I heard through others in the industry he is getting a developer to work with him on developing Greenwich. I hope he actually pulls this off as at the end of the day I will see my money back. I dont see why we seem to be overly negative on this blog there is some positive news that is coming out of PE. As much as he pissed me off with not returning my calls I truly think he is going to turn this around.
ReplyDeleteTo Posting Tuesday April 19, 2011 9.08 PM
ReplyDeleteWhy don't you give him all your money and assets to develop the Greenwich, since you have such faith in him?
Shariff does not return your calls because he is a scammer and a fraudster who wants you to go away so he can keep your money, you A.H., foolish person.
If Shariff was really interested in being a developer, he would have developed the Greenwich a long time ago.
Instead, he steals limited partners' money by taking out mortgages against every project through Mamdani.
Almost everyone in Calgary knows what he is except you, you stupid, KMA, A.H.
To Posting Tuesday April 19, 2011 9.08 PM
ReplyDeleteWhy don't you ask Shariff
1. what he did with all the profits he made from selling limited partners investments in commercial buildings, some at $50,000 per unit
2. about the abandoned Lucaya project and what he did with limited partners' investment money
3. about the profits he stole from Leben Reit investors
4. about the Greenwich limited partners' money he took out in mortgages without even getting the project approved by the City of Calgary?
I invested in Barron. Any one have any info on this investment or the roll-over?
ReplyDeleteanyone missing their T5013 slip?
ReplyDeleteI never recieved one to date
ReplyDeleteHaven't received one either. Sounds familiar, that was the next step with our Shire investment when we didn't receive our T5013. Many may be aware how that unfolded
ReplyDeleteI don't... What happened there???
ReplyDeletenext step is they are gone!...and so is our money
ReplyDeleteTo Posting Friday April 29, 2011 6.53PM and Thursday May 5, 2011 8.44 AM
ReplyDeleteShariff Chandran does not like to answer questions or if he does it is a bunch of lies.
These are behaviours of a major scammer, fraudster and embezzler.
Just head down to the Calgary Police Station and to the Calgary division of the RCMP with your memorandum(s) and proof of investment
Just a reminder not to invest anymore of your
ReplyDeleteprecious money with Holzbren Capital or Gatehouse
Capital because you know who is there to steal
your money again!
Head down to your favourite Police Station and RCMP division with your proof of investment and your memoranda of your investment, which sound so stupid, that Shariff Chandran and his lawyers should be imprisoned on sight.
ReplyDeleteAnonymous said...
ReplyDeleteTo Posting Friday April 22, 2011 9.39 AM
It is not so much of expecting a 100% return on investment with risk as much as making a mistake of trusting you scammers and fraudsters, pretending you have good real estate developments when you intended to defraud limited partners of their money by putting up a front and using your lawyers to make up a memorandum that is full of bullshit in your favour.
Monday, April 25, 2011 10:42:00 AM
I am new to issues with platinum... I am heavily invested in greenwich after a roll over from the barron bldg. can anyone provide more info on this project as to what is going on
ReplyDeleteTo Posting Sunday May 08, 2011 5.23PM
ReplyDeletePlease read thoroughly through General
Discussions and Sunpark / Pemberton blogs
especially. The rest of the blogs will tell
you the same thing that Shariff Chandran is a
scammer and embezzler of limited partners
money. You will find out about the Greenwich.
Shariff Chandran took out limited investors money to the tune of $16 million as mortgages through his friend Riaz Mamdani and he has not developed the Greenwich. Although he was happy to take out limited partners money to spend on himself, his family and his conspirators, he has left the Greenwich without City of Calgary Approval. There are 3 mortgages, totalling $16 million and a lien of $49,000 on the Greenwich lands. No one in Calgary wants to work with him because he is a scammer, fraudster and embezzler of limited partners money.
I am having trouble choosing my "favourite" police station. There are just so many good ones to choose from.
ReplyDeleteIt appears to be so!!!!
ReplyDeleteThe president and ceo of Holzbren Capital Inc., Shariff Chandran, is nothing but a scum dog and big time scammer, pretender and fraudster!!!!!!
ReplyDeleteI decided to copy this post on General Discussion to make sure WE ALL do our part, instead of just sitting back and waiting for a few to represent our discontent. Please send your email today!
ReplyDeletePOST FROM GRENWICH:
I think more people should email Kim Guttersmon (kguttormson@calgaryherald.com) of the Calgary Herald to expose Chandran and Mamdani for what they are and for what they continue to do in and around Calgary. If the ASC and the RCMP refuse to do anything, then we should make sure the rest of the public is protected from these two.
For those of you not familiar with Kim Guttersmon, here are few chosen paragraphs from an article she wrote a few months back.....
By Kim Guttormson, Calgary Herald February 23, 2011 7:51 AM
Securities regulators across the country - including Alberta's - are taking more cases of misconduct to court in an effort to respond to public demand for tougher sanctions, the CEO of the local commission says.
"They wonder why they're not seeing jail sentences for people who have committed fraud," said Bill Rice, CEO of the Alberta Securities Commission and chairman of the national Canadian Securities Administrators (CSA). "It's more difficult to go through, the criminal courts, for a regulatory agency, but I think we're all feeling some pressure to demonstrate some stronger sanctions, particularly in respect to real fraud."
.........
In those cases, fifteen people were given jail terms - including Calgarian Robert John Sellars who, after being found guilty of lying to investors, received a two-year sentence and was ordered to pay restitution of almost $2 million.
Rice said the ASC has decided it will be taking more cases before the provincial court.
...........
"We feel we're having some success in spotting things at an earlier stage and certainly success in pursuing them," Rice said, .....
kguttormson@calgaryherald.com
© Copyright (c) The Calgary Herald
Despite this article and many complaints to the ASC and RCMP we still have had no signs by these two respective organizations that anything is being done. NOW IN MY OPINION, THAT'S A CRIME IN IT'S SELF!
Tony Tighe "Consumer SOS" Global TV?
ReplyDeletettighe@globaltv.com
Lea Williams-Doherty CTV?
lea.williams-doherty@ctv.ca
(She reported on Shire Investments)
To All Limited Partners
ReplyDeletePlease check out the CTV Calgary Division regarding Shire Investments reporting.
Unfortunately, Shariff Chandran and his sister are behaving the same way as the Shire Real Estate Investment saga, lies or no communication to limited partners.
Also, limited partners, do not forget to call or email the media in Calgary, that includes the Calgary Herald, other newspapers in Alberta and the broadcasting media.
To All Limited Partners of All Platinum Equities Projects
ReplyDeleteThe more each of you, limited partners, call the broadcasting and newspaper media, the more the media will see how we have been treated by Shariff Chandran.
Thank you to all supporters of this plan. We can make a difference, if we pull together.
ReplyDeleteHere are the media information
ReplyDeleteCalgary Herald
215-16th St. S.E. Calgary, AB T2E 7P5
phone 403-235-7433 (24 hours)
Fax 403-235-7379
news tips email: submit@calgaryherald.com
or if you want kguttormson@calgaryherald.com
Calgary Sun
ReplyDelete2615 12 Street NE, Calgry, AB, T2E 7W9
phone 403-410-1010
Fax 403-250-4176
news tips email to calnews@calgarysun.ca
phone tips 403-250-4124
Edmonton Sun
ReplyDelete4990-92 Avenue, Suite 250, Edmonton, AB, T6B 3A1
phone 780-468-0281
news tips email citydesk@edmsun.com
fax 780-468-0139
Edmonton Journal
ReplyDelete10006-101 St., Edmonton, AB, T5J 0S1
phone 780-498-5500
city@edmontonjournal.com
or
Brent Wittmeier 780-429-5327
bwittmeier@edmontonjournal.com
Edmonton Journal has no fax number.
ReplyDeleteThe National Post also covers Calgary, AB
ReplyDeleteThe National Post
Consumer Complaints Division
1450 Don Mills Rd. Suite 300
Toronto, ON M3B 3R5
phone 1-800-267-6568
Fax 416-383-2305
email none (does not show an email address)
The Toronto Star is also a national newspaper covering across Canada.
ReplyDeleteThe Toronto Star
One Yonge St. 5th Floor
Toronto, ON M5E 1E6
Attention: Ellen Roseman
Consumer Columnist for "On Your Side"
phone toll free 1-800-268-9213
email: eroseman@thestar.ca
fax 416-869-4328 (this is not toll free)
Ellen Roseman is a great consumer advocate. Write an email or letter or call her toll free.
The National Post phone number 1-800-267-6568 is also toll free.
ReplyDeleteThe National Post is a great newspaper for business people.
ReplyDeleteI see a lot of information on media being posted but like everything else I wonder just how many people are REALLy doing anything about it. One person (me) does not impact media to move forward with an investigation, however if many do act on this information then clearly we should start seeing some immediate results. Please do your part, all it takes is an email.
ReplyDeleteI would like to thank all of those in advance if you have or are in the process of communicating your concerns to the media. It will not only benefit you but also all of us, your co investors in Platinum.
To Posting Tuesday May 17, 2011 1.32 PM
ReplyDeleteThank you very much for your support.
We are a team and need to keep up that team spirt to get our money back plus earnings.
If we can contact at least 2 newspapers and 2 broadcast media, we would hopefully get feedback and that will take us to the next step of resolving and progressing about this Shariff Chandran who has our money and holding on to it without rightfully paying capital gains and interest on our invested funds.
SHARIFF CHANDRAN HAS JUST SENT A LETTER TO DOMINION PLACE INVESTORS CALLING FOR A VOTE AS TO WHETHER THE PARTNERSHIP SHOULD PAY THE LEGAL FEES OF THE PLAINTIFFS WHO HAVE BROUGHT LEGAL ACTION AGAINST THE GENERAL PARTNER (SHARIFF CHANDRAN)ON BEHALF OF DOMINION INVESTORS.
ReplyDeleteA VOTING DEADLINE IS SET FOR MONDAY MAY 23, 2011 A STAT HOLIDAY.
BEFORE YOU VOTE-----
IF YOU ARE A DOMINION (QUALIA V) INVESTOR AND HAVE ANY QUESTIONS OR WOULD LIKE TO DISCUSS THIS VOTE AND SURROUNDING LP INVESTMENT ISSUES PLEASE CONTACT DEANNA OXTOBY @ 403-993-4266.
Shariff Chandran has just sent a letter to Dominion Place investors calling for a vote as to whether the partnership should pay the legal fees of the plaintiffs who have brought legal action against the general partner (Shariiff Chandran) on behalf of all Dominion investors. A voting deadline is set for Monday May 23, 2011, a Stat Holiday.
ReplyDeleteBefore you vote..... If you are a Dominion investor and have any questions or would like to discuss this vote and surrounding LP investment issues, please contact Deanna Oxtoby @ 403-993-4266
Has anyone read the latest Dominion title document? Multus (Shariff) has taken another $600K mortgage on the building just last month! That's a total of $16.7 million in mortgages that are registered against our building right now! We started with only $14.2 million and we've been paying this down every month for the last 5 years.
ReplyDeleteHow come the 'summary payout' to investors for the TRL sale doesn't mention the $16.7 in mortgages? The summary shows just under $13 million. All of a sudden our $67,000 payout turns into $49,000!
Has anyone read the 2010 financial statements? How is it that our administrative fees have gone from $24,000 (2009) to $1 million (2010) in just one year?
Does this not seem shocking? Does anyone care? Should we let him continue?
Well apparently he expects that the Partnership should continue to pay HIS legal fees while he just continues to fight investors attempting to get to the truth surrounding the business of the Partnership.
ReplyDeleteSomething definitely wrong with this picture.
This type of information needs to be put into a chronological documented article sent to the media outlets. That should get the required responses.
ReplyDeleteAnonymous said...
ReplyDeleteTo Posting Tuesday May 17, 2011 4.27 PM
Since Shariff Chandran is only using limited partners' money to accomplish his own goals because he cannot get financing from CIBC or other major banks, we, limited partners, should charge him penalties and interest for this.
Wednesday, May 18, 2011 6:22:00 AM
Dominion Investors please be patient and do not submit your vote until you hear from legal counsel. If you have not received the most recent affidavit and/or 2010 financial statements, please contact Deanna at
ReplyDelete403-993-4266.
I'm voting 'yes' to continue the lawsuit so that there is a hope of getting a return on my investment!
ReplyDeleteWho are we going to trust? Platinum Equities who have mismanaged our money and investments or fellow investors who want a return on their investment?
ReplyDeleteI have to wonder what kind of voting advice "legal counsel" or Deanna Oxtoby will give me regarding this.
ReplyDeleteI just want the building sold.
I am sure your intentions were to help us Deanna, but you didn't. I can't in good conscience support this.
How do you know whether Deanna helped you or not? Have you called? Do you really know what's going on?
ReplyDeleteIn reply to poster @ 11:41 am:
ReplyDeleteIncredible that you "just want the building sold" really.
What kind of investor are you when you don't even care how much or actually how little you are paid or where your funds and equity have gone under Chandran's management?
The rest of us clearly DO CARE but then again who knows whether you really are a co-investor anyway.
Dominion Investors:
ReplyDeleteOn February 25, 2011 Mr. Chandran wrote to investors regarding a $30 million sale offer on the Dominion Building. With that letter, Mr. Chandran provided a Calculation of Distributions to Investors showing the approximate per unit amount that would be distributed to the limited partners ($67,063.73) on the sale. Unfortunately, the Calculation of Distributions to Investors also showed the Partnership's mortgage balance as at March 1, 2011 to be less than $13 million when a current Title search shows that the Partnership's mortgage balance is $16.7 million (including a new $600,000 mortgage registered against the property on March 31, 2011). Despite the obvious impact that the increased mortgage liability has on a distribution to the limited partners, Multus did not disclose the new mortgage amounts to the limited partners and has not offered any explanation.
The Partnership's 2010 financial statements have been sent to some Limited Partners. Those statements show that "Administrative Fees" increased by more than $1 million from 2009 to 2010 . That is a 4500% increase! The financial statements appear to have been sent out at the beginning of May. If you do not have them, let us know and we will forward them.
While it is not new information, it is important to remind limited partners that Multus (Mr. Chandran) granted a $600,000 mortgage against the property to Strategic Financial in 2009. The nature of this mortgage has been uncovered in the course of the lawsuit against Multus. Mr. Chandran has now said twice under oath that it would be discharged at no cost to the partnership (but hasn't yet fulfilled those promises despite making them months ago). If Mr. Chandran does what he promised to do, then this lawsuit has saved the partnership $600,000 by preventing the payout of a $600,000 mortgage that Multus should have never granted.
To be continued below....
SHARIFF CHANDRAN HAS JUST SENT A LETTER TO DOMINION PLACE INVESTORS CALLING FOR A VOTE AS TO WHETHER THE PARTNERSHIP SHOULD PAY THE LEGAL FEES OF THE PLAINTIFFS WHO HAVE BROUGHT LEGAL ACTION AGAINST THE GENERAL PARTNER (SHARIFF CHANDRAN)ON BEHALF OF DOMINION INVESTORS.
ReplyDeleteA VOTING DEADLINE IS SET FOR MONDAY MAY 23, 2011 A STAT HOLIDAY.
BEFORE YOU VOTE-----
IF YOU ARE A DOMINION (QUALIA V) INVESTOR AND HAVE ANY QUESTIONS OR WOULD LIKE TO DISCUSS THIS VOTE AND SURROUNDING LP INVESTMENT ISSUES PLEASE CONTACT DEANNA OXTOBY @ 403-993-4266.
Yes, the partnership should pay for limited partners' litigation against the general partner because the general partner is already using the limited partners' money to hire expensive lawyers to pay for the general partner's and principal of PE's own wrongdoings, theft, embezzlement, lies on the accounting books, lies on financial statements, lies to the auditors of the financial statements and lies coming out his own mouth.
ReplyDeleteYes, this is just a reminder to all limited partners and all other new investors not to invest in the Holzbren Capital Inc. and Gatehouse Capital Inc. because you will be faced with the same wrongdoings as in the Platinum Equities limited partners' misery, trauma and stress.
ReplyDeleteTo Posting Sunday May 22, 2011 12.09 AM
ReplyDeleteI absolutely agree. The partnership should pay for the limited partners' litigation against Shariff Chandran, the general partner and CEO of Platinum Equities because Shariff Chandran is already spending limited partners' money for his own litigation against limited partners.
So, why NOT?
Once again, report your real estate investment fraud to the RCMP hotline at
ReplyDelete1-888-495-8501 Toll Free
You will get more action from RCMP headquarters in Ottawa because Platinum Equities investment fraud is a national crime, meaning there are victims across Canada, in British Columbia, Alberta, Sasketchewan, Manitoba, Ontario, Quebec and Atlantic Provinces.
ReplyDeleteAll Shariff Chandran's conspirators and employees such as Philip Pincus, Geof Filson, Steve Van Die, Mattthew Kim and others are all liable for real estate investment fraud with Shariff and Chitra Chandran.
ReplyDeleteRemember when you report to the RCMP in Ottawa, mention the names of all employees who help the Chandrans and also if you know of any other conspirators, mention their names too.
ReplyDeleteDominion Investors:
ReplyDeleteOn February 25, 2011 Mr. Chandran wrote to investors regarding a $30 million sale offer on the Dominion Building. With that letter, Mr. Chandran provided a Calculation of Distributions to Investors showing the approximate per unit amount that would be distributed to the limited partners ($67,063.73) on the sale. Unfortunately, the Calculation of Distributions to Investors also showed the Partnership's mortgage balance as at March 1, 2011 to be less than $13 million when a current Title search shows that the Partnership's mortgage balance is $16.7 million (including a new $600,000 mortgage registered against the property on March 31, 2011). Despite the obvious impact that the increased mortgage liability has on a distribution to the limited partners, Multus did not disclose the new mortgage amounts to the limited partners and has not offered any explanation.
The Partnership's 2010 financial statements have been sent to some Limited Partners. Those statements show that "Administrative Fees" increased by more than $1 million from 2009 to 2010 . That is a 4500% increase! The financial statements appear to have been sent out at the beginning of May. If you do not have them, let us know and we will forward them.
While it is not new information, it is important to remind limited partners that Multus (Mr. Chandran) granted a $600,000 mortgage against the property to Strategic Financial in 2009. The nature of this mortgage has been uncovered in the course of the lawsuit against Multus. Mr. Chandran has now said twice under oath that it would be discharged at no cost to the partnership (but hasn't yet fulfilled those promises despite making them months ago). If Mr. Chandran does what he promised to do, then this lawsuit has saved the partnership $600,000 by preventing the payout of a $600,000 mortgage that Multus should have never granted.
There is concern that the sale proceeds could be used or paid out improperly. Because of that, the Plaintiffs applied to the Court on May 13th for an order to protect the sale proceeds. Despite vigorous opposition by Multus, that order was granted and prevents the sale proceeds from being distributed without a further order from the Court (except for certain exceptions such as outstanding property tax).
We must continue to ask questions and get information from Multus and Mr. Chandran (the limited partners have a right to that information under the Partnership Agreement). We do not know if partnership funds have been used properly or improperly. But there are many serious questions and concerns that Multus has refused to answer and notably, it has refused to provide the records that are necessary to trace the use of partnership funds. Because of Multus' refusals to answer simple questions and provide basic explanatory records (or even access to such records), a Court appointed officer (receiver or inspector) is necessary to conducting a full audit that details the use of partnership funds.
The legal costs incurred in this lawsuit are a direct result of Multus' refusals to provide the information that it is required to provide under the Partnership Agreement and that it was compelled to provide by certain Court orders. It is our view that Multus should not pay its legal costs with partnership money when those costs are a direct result of its own improper refusals and conduct. For the same reasons, it is also our view that Multus should pay the legal costs incurred by the plaintiffs in this lawsuit. The Court will be asked to provide that relief first. The partnership should only pay legal fees as a last resort and only because the partnership as a whole (not the individual plaintiffs) has benefited $600,000 from the plaintiff's actions and may benefit further by the tracing (and if necessary, the recovery) of partnership funds.
Please call Deanna Oxtoby directly at 403-993-4266 if you have any concerns or questions.
Dominion Investors:
ReplyDeleteOn February 25, 2011 Mr. Chandran wrote to investors regarding a $30 million sale offer on the Dominion Building. With that letter, Mr. Chandran provided a Calculation of Distributions to Investors showing the approximate per unit amount that would be distributed to the limited partners ($67,063.73) on the sale. Unfortunately, the Calculation of Distributions to Investors also showed the Partnership's mortgage balance as at March 1, 2011 to be less than $13 million when a current Title search shows that the Partnership's mortgage balance is $16.7 million (including a new $600,000 mortgage registered against the property on March 31, 2011). Despite the obvious impact that the increased mortgage liability has on a distribution to the limited partners, Multus did not disclose the new mortgage amounts to the limited partners and has not offered any explanation.
The Partnership's 2010 financial statements have been sent to some Limited Partners. Those statements show that "Administrative Fees" increased by more than $1 million from 2009 to 2010 . That is a 4500% increase! The financial statements appear to have been sent out at the beginning of May. If you do not have them, let us know and we will forward them.
While it is not new information, it is important to remind limited partners that Multus (Mr. Chandran) granted a $600,000 mortgage against the property to Strategic Financial in 2009. The nature of this mortgage has been uncovered in the course of the lawsuit against Multus. Mr. Chandran has now said twice under oath that it would be discharged at no cost to the partnership (but hasn't yet fulfilled those promises despite making them months ago). If Mr. Chandran does what he promised to do, then this lawsuit has saved the partnership $600,000 by preventing the payout of a $600,000 mortgage that Multus should have never granted.
There is concern that the sale proceeds could be used or paid out improperly. Because of that, the Plaintiffs applied to the Court on May 13th for an order to protect the sale proceeds. Despite vigorous opposition by Multus, that order was granted and prevents the sale proceeds from being distributed without a further order from the Court (except for certain exceptions such as outstanding property tax).
When limited partners of each project file a lawsuit, remember to sue Shariff and Chitra Chandran, their employees, conspirators and Platinum Equities Inc. for your legal fees and court costs and any other expenditures you will incur to get your money back.
ReplyDeleteJust a reminder to send your complaints against Shariff and Chitra Chandran, their employees, conspirators and Platinum Equities Inc. and their numbered corporations to the media, 2 newspapers of your choice, preferably the national newspapers and the broadcast media, preferably the national ones too.
ReplyDeleteInstead of being productive to earn money for the limited partners and general partner by developing projects such as the Lucaya and managing the commercial real estate syndications, the Chandran group and principal Shariff Chandran would rather rip off limited partners and hold them ransom with their money by being unaccountable, uncommunicative and deceptive with his practices.
ReplyDeleteIn other words, he is a nothing but a scammer and human scum.
To Posting Tuesday May 24, 2011 1.42 AM
ReplyDeleteYes, we agree. Shariff Chandran would rather steal millions of dollars from his limited partners because he thinks it is easier to steal money and get away with it by hiring expensive lawyers to give the limited partners hard times again.
But he, his family, his faithful employees and his other conspirators will soon SEE!!!!!!
Shariff Chandran thinks he can make back the money with Holzbren Capital Inc. and Gatehouse Capital Inc.,which are just other fronts to steal from investors. This is just another PONZI scheme.
Limited partners must report their lost of money, misery, trauma and stress to the broadcasting media and national newspapers and to the national RCMP and start litigation if they have not already done so.
Glad to have found this site as I am an investor with Lucaya and 744 Building in Calgary which is now going into foreclosure. What should I do???
ReplyDeleteTo Posting Tuesday May 24, 2011 6.52 PM
ReplyDeleteOur advice to you is to connect with other limited partners in each of the projects you are in. This you can do by placing ads in the local papers, whether in Calgary and Kelowna requesting other victims to contact you by phone numbers, emails or in writing. You create a meeting place to introduce yourselves and tell your stories about your investment and how it affected you. Next you vote on a team that would lead and co-ordinate the communication and actions amongst your group. Then you would contact a reputable legal firm to take on your case, where each member would contribute toward the legal costs. This would spread the cost around depending on the value of your investment in Lucaya and 744. The more victims you can contact, the costs would be shared pro-rata and around. Then your legal firm will direct you on what they can do for your group.
Remember to check the Lucaya blogs because there is very relevant and significant information as to why the CIBC did not continue the financing and it was not because of the economic downturn, but Shariff Chandran who withdrew the equitiy on the Lucaya property by placing a mortgage through Riaz Mamdani. Thus he took the money out from the Lucaya limited partners to fund his own personal and financial goals and left the Lucaya property in a mess and in limbo. The 744 Building in Calgary, we have not read your story. However, you can start to organize a fed-up group of limited partners and continue from there on. We hope we have been of help to you, however, if you want your money back from Shariff Chandran, you will have to be pro-active and persistent because you deserve your money back. You worked hard for it. Good Luck and God Bless you!!!!!
Dear Blogmaster,
ReplyDeleteI placed a blog responding to Posting Tuesday May 24, 2011 6.52 PM and it disappeared.
Can you please retrieve? Much appreciated.
To Posting Tuesday May 24, 2011 6.52 PM
ReplyDeleteYou have to connect with other victims in each of your projects by placing ads in the local newspapers in Calgary and Kelowna. You obtain others' phone numbers, emails, or you can correspond in writing. By creating a victims' group, you can voice your experiences about your investments in the Lucaya and 744. Next you meet in person and select a team of victims who will lead and co-ordinate the groups' actions and manage the groups' concerns. Then you select a reputable legal firm which would represent your group. The more members you gather, the costs would be shared around pro-rata based on the dollar size of your investments. The legal team would then proceed to guide you in your litigation against Shariff Chandran, employees and others you can think of.
If you check the Lucaya blogs, you will find significant and relevant information for your legal firm to act on. Concerning 744, we are not aware of the details for your trauma,and you would have to organize a similar victims' group to proceed with litigation.
Good luck in your endeavours and we hope you can recover your money as a limited partner because you worked hard for it. You must be pro-active and persistent in organizing, leading, co-ordinating and suing these fraudulent bastards.
To Posting Tuesday May 24,2011 6.52 PM
ReplyDeleteGet legal advice.
To All Limited Partners in All Projects
ReplyDeleteShariff and Chitra Chandran are nothing but SCREWBALLS.
Get out of your limited partnerships with Platinum Equities.