Sunday, June 11, 2023

StateView Homes - Taurasi brothers accused of fraud - update

Ontario home developer StateView Homes is facing allegations from TD bank that it orchestrated a year long fraud totalling over $37m. TD Bank filed a lawsuit against brothers Carlo and Dino Taurasi, alleging they carried out a massive cheque-kiting scheme.
The Ontario Superior Court approved the sale of various assets of Stateview Homes. It owes over $350m to various creditors. Across eight projects, the South Asian Taurasi brothers stole over $77m in deposits of 765 buyers.
Homebuyers who paid deposits may be eligible for deposit protection from Tarion Warranty Corporation, which provides deposit insurance and administers Ontario’s new home warranty program. For homes far from completion that may not come to pass. Purchase contracts may be extinguished in creditor proceedings. The lawsuit named 25 associated corporations, five directors of those companies and StateView's former CFO Daniel Ciccone.
Fraudsters wrote thousands of bad cheques for large sums from both corporate and personal accounts at other banks.

Dino Taurasi, President
Scammers would cash the cheques into TD accounts and TD would conditionally release the money before the cheque cleared. Crooks would quickly withdraw the funds and then cancel the cheque to prevent the money from actually being transferred to the TD account. A court document indicates the lawsuit was filed to cement a settlement. In the proposed settlement, until the money is repaid, TD plans to hold 31 properties including at least three of StateView's pre-construction projects.

Carlo Taurasi, CEO & President
Three other lenders are also suing the brothers to get back nearly $200m they loaned StateView. Lenders KingSett Mortgage Corporation and Dorr Capital Corporation allege that StateView has not paid for development charges and permits, or contractors for one project, and has tried to sell another without the lenders' consent. StateView has some 1,400 homes planned across the GTA, many of which have already been sold with deposits paid.