Real Estate Developer and Director Ordered to Pay Nearly $100K for Failing to File Disclosure Statement and Hold Funds in Trust
Halcyon Point Development ULC and its director Dale Tortorelli failed to provide purchasers with a disclosure statement that would have explained the nature of the transaction, and did not hold deposit funds in trust. They marketed a development property in the Arrow Lakes area in B.C. to purchasers seeking to acquire a 1.3 acre portion of the property and build a house on that portion. Halcyon and Tortorelli did not prepare or file a disclosure statement before marketing the property. When the purchasers provided Halcyon and Tortorelli with $80,000 in deposits, they did not hold the deposit funds in a trust account. Instead, Tortorelli deposited the funds into his various business accounts.
BCFSA is responsible for enforcing developer requirements under REDMA and takes action, including ordering financial administrative penalties, to protect consumers, encourage compliance with REDMA and regulations, and deter future misconduct.
Read the sanctions decision for full details.
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