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Globe says OSC notes bankruptcy of Fortress affiliates

2018-12-20 06:55 ET - In the News

The Globe and Mail reports in its Thursday edition that a third mortgage brokerage firm affiliated with troubled Fortress Real Developments has gone out of business, shutting down the last of the network that helped Fortress raise $920-million in syndicated mortgage financing from retail investors. The Globe's Janet McFarland writes that FFM Capital Inc., based in Vaughan, Ont., near Toronto filed for bankruptcy on Dec. 4. The company said it had liabilities of $910,935 and no assets. A first meeting of creditors is set for Friday, according to the filing. The company has also shut its website. FFM was one of three affiliated mortgage brokerage firms that raised funds from the public to finance new real estate development projects co-ordinated by Fortress. Between 2008 and 2017, Fortress raised about $920-million from 14,000 regular investors to finance projects, with most of that money coming through three affiliated mortgage brokerages: FFM, FDS Broker Services and FMP Mortgage Investments. The three firms dealt directly with the public, helping promote syndicated mortgages for Fortress projects.

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