|By PR Newswire||
|November 25, 2012 05:33 PM EST||
TORONTO, Nov. 25, 2012 /PRNewswire/ - Some of the investors in the Trump International Hotel & Tower Toronto ("Trump Hotel"), in a last-bid effort to obtain immediate assistance before their looming November 29th closing dates, have sought the assistance of the Ontario Securities Commission ("OSC"), which oversees the offering of investments in Ontario. The investors are asking the OSC to launch a formal investigation into the investment scheme offered as part of the Trump Hotel.
Immediate action by the OSC has become urgent in light of the fact most of the investors have a November 29, 2012 closing date, and every Canadian bank has refused to offer financing to investors. Though promised by the developers of the hotel, Talon International Inc., that the hotel units could be easily financed as residential condominium units, and the agreements structured as such, investors have come to learn that Canadian banks are treating the hotel project as a commercial enterprise, and have all refused financing as a condominium purchase.
To make matters worse, the investors have also discovered that their investments are running at losses of upwards of $175 a day per unit, due to the current shortfall between the maintenance fees and the hotel unit revenues.
With a looming closing date of November 29, 2012, and banks refusing financing, investors are faced with either having to either come up with substantial amounts of cash to close or resort to secondary financial institutions which will only provide partial financing for this project as a commercial investment at prohibitively high interest rates.
Some of these investors have already commenced a multi-million dollar lawsuit against Talon and their directors, as well as a number of Trump organizations and their directors, including Donald Trump Sr.
Without conventional mortgage financing, these investors will be unable to close on the hotel units on their November 29th closing date. Talon has already initiated legal proceedings against a number of investors who have tried to rescind their agreements and/or have notified Talon of their inability to close on November 29th. Meanwhile, the plaintiffs' claims allege that investors were persuaded into investing in the Trump Hotel on the basis of alleged negligent or reckless misrepresentations by all the parties involved, and that the promises and projections offered were not only allegedly inaccurate, but in contravention of securities regulations.
Back in 2004, when the hotel project was first being planned, Talon sought permission from the OSC to be exempt from the strict (and costly) regulatory requirements for commercial investments, and provided a number of promises and conditions to the OSC in order to obtain those exemptions.
In granting an exemption, the OSC made it a strict condition that Talon and Trump Hotel not market the hotel units as a cash-flow investment. Immediately thereafter, the plaintiffs allege that the developers ignored those promises and actively marketed and sold hotel units on the representation of a sizeable return on investment, proposing anywhere from 5% to more than 20% returns as soon as the hotel opened.
The plaintiffs in this case, represented by the law Toronto-based law firm of Heydary Hamilton PC, have formerly requested that the OSC conduct a full and immediate investigation to determine whether or not the investment scheme is in violation of the Securities Act, or the 2004 OSC ruling. If so, the OSC has the capacity to immediately order that all further transactions relating to the hotel units, and any closings, be halted.
Meanwhile, Ontario courts have declined to hear the matter on an urgent basis, notwithstanding the upcoming November 29th deadline, and have pushed any preliminary hearing of this dispute into late 2013.
Although many of the investors have lost all hope of a timely response in light of looming closing date, Javad Heydary, the lead counsel for the plaintiffs' is optimistic as to the OSC':
|"I have full confidence in the Ontario Securities Commission in that they will take all the necessary steps which, in our opinion, requires a close examination of this project. Whether the Commission decides to act or not is not for us to comment on, but we (as lawyers acting for the investors) do know that they will give this matter the serious attention that the circumstances mandate, and for that the Commission has our clients' appreciation and gratitude - even if the Commission's final decision is not one that involves the immediate intervening steps as requested by our clients."|
This press release is issued on behalf clients represented by Heydary Hamilton PC including those named in Ontario proceeding Kim et al. v. Trump et al., CV-12-468175.
More information on the plaintiffs' claim can be found at www.tlawsuit.ca.
All allegations therein are unproven until determined by a court of law.
A sample Trump Tower presentation, including investment projections:
SOURCE Heydary Hamilton Professional Corporation
The speed of product development has increased massively in the past 10 years. At the same time our formal secure development and SDL methodologies have fallen behind. This forces product developers to choose between rapid release times and security. In his session at DevOps Summit, Michael Murray, Director of Cyber Security Consulting and Assessment at GE Healthcare, examined the problems and presented some solutions for moving security into the DevOps lifecycle to ensure that we get fast AND ...
Mar. 5, 2015 06:00 AM EST Reads: 2,836
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understand...
Mar. 5, 2015 05:00 AM EST Reads: 2,740
Red Hat has launched the Red Hat Cloud Innovation Practice, a new global team of experts that will assist companies with more quickly on-ramping to the cloud. They will do this by providing solutions and services such as validated designs with reference architectures and agile methodology consulting, training, and support. The Red Hat Cloud Innovation Practice is born out of the integration of technology and engineering expertise gained through the company’s 2014 acquisitions of leading Ceph s...
Mar. 5, 2015 04:45 AM EST Reads: 1,055
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing ...
Mar. 5, 2015 04:00 AM EST Reads: 1,193
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
Mar. 5, 2015 04:00 AM EST Reads: 3,302
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use c...
Mar. 5, 2015 04:00 AM EST Reads: 3,045
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, includin...
Mar. 5, 2015 03:30 AM EST Reads: 2,794
Software Defined Storage provides many benefits for customers including agility, flexibility, faster adoption of new technology and cost effectiveness. However, for IT organizations it can be challenging and complex to build your Enterprise Grade Storage from software. In his session at Cloud Expo, Paul Turner, CMO at Cloudian, looked at the new Original Design Manufacturer (ODM) market and how it is changing the storage world. Now Software Defined Storage companies can build Enterprise grade ...
Mar. 5, 2015 03:30 AM EST Reads: 2,814
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Mar. 5, 2015 03:15 AM EST Reads: 4,642
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Mar. 5, 2015 02:45 AM EST Reads: 3,992
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS soluti...
Mar. 5, 2015 02:30 AM EST Reads: 1,292
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what th...
Mar. 5, 2015 02:30 AM EST Reads: 4,600
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
Mar. 5, 2015 02:00 AM EST Reads: 3,147
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and ex...
Mar. 5, 2015 01:30 AM EST Reads: 3,709
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Mar. 5, 2015 01:00 AM EST Reads: 4,552