Closing arguments have concluded in the fraud trial of Fortress Real Developments’ Jawad Rathore and Vince Petrozza, developers of the failed $200M SkyCity condo project in Winnipeg. Prosecutors allege the pair misled investors through syndicated mortgages by inflating land values to attract funding. The defense countered that investors were warned of risks and brokers bore disclosure responsibility.
Crown prosecutor Vallery Bayly argued the duo misrepresented property values key to syndicated mortgage security, citing withheld lower appraisals and misleading presentations to investors. A SkyCity promotional video and internal emails were presented as evidence of deceit.
Defense lawyers stressed that Fortress backed 80 projects, with many yielding strong returns, and emphasized that Rathore and Petrozza did not directly sell to investors. They maintained that disclosed valuations were legitimate and that non-relied-upon appraisals were contractually restricted from release.
The court now awaits a decision in a case spotlighting the opaque risks of syndicated mortgage schemes.
Source: Swifteradio.com
