News Feed Item

Investors in Trump Tower Request Investigation by Ontario Securities Commission

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.

Statement of Claim: http://www.heydary.com/tlawsuit/documents/courtpleadings/Issued%20Statement%20of%20Claim%20%282012%2011%2021%29.pdf

All allegations therein are unproven until determined by a court of law.

2004 OSC Ruling: http://www.osc.gov.on.ca/en/SecuritiesLaw_ord_20040611_232_taloninternational.htm

A sample Trump Tower presentation, including investment projections:

SOURCE Heydary Hamilton Professional Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Successful transition from traditional IT to cloud computing requires three key ingredients: an IT architecture that allows companies to extend their internal best practices to the cloud, a cost point that allows economies of scale, and automated processes that manage risk exposure and maintain regulatory compliance with industry regulations (FFIEC, PCI-DSS, HIPAA, FISMA). The unique combination of VMware, the IBM Cloud, and Cloud Raxak, a 2016 Gartner Cool Vendor in IT Automation, provides a co...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
OnProcess Technology has announced it will be a featured speaker at @ThingsExpo, taking place November 1 - 3, 2016, in Santa Clara, California. Dan Gettens, OnProcess’ Chief Analytics Officer, will discuss how Internet of Things (IoT) data can be leveraged to predict product failures, improve uptime and slash costly inventory stock. @ThingsExpo is an annual gathering of IoT and cloud developers, practitioners and thought-leaders who exchange ideas and insights on topics ranging from Big Data in...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

SYS-CON Events announced today that CDS Global Cloud, an Infrastructure as a Service provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CDS Global Cloud is an IaaS (Infrastructure as a Service) provider specializing in solutions for e-commerce, internet gaming, online education and other internet applications. With a growing number of data centers and network points around the world, ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...