Tuesday, May 2, 2023

Ontario home developer StateView Homes accused of $37m fraud scheme

Ontario home developer StateView Homes, based in Woodbridge, Ont., is facing allegations from TD bank that it orchestrated a year long fraud totalling over $37m. TD Bank has filed a lawsuit against brothers Carlo and Dino Taurasi, alleging their company carried out a sophisticated cheque-kiting scheme from April 2022 to last month. The lawsuit also names 25 associated corporations, five directors of those companies and StateView's former CFO Daniel Ciccone.
TD alleges fraudsters wrote thousands of bad cheques for large sums of money from both corporate and personal accounts at other banks.
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.

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.

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.