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Class Action Law Suits Lawyers Mitchell Wine, of MSTW Professional Corporation and Margaret Waddell of Sotos joined forces in prosecuting five proposed class actions relating to syndicated mortgage loans (SMLs) promoted by Fortress Real Developments Inc. and Fortress Real Capital Inc. Details of the proposed class actions, as well as statements of claims, and settlements can be found on the Sotos website. (search Fortress). The actions relate to the SMLs registered on five different real estate developments: Collier Centre – (2012 syndicated mortgage loan only) Progress Manors Ten88 Sutton/The Link Harmony Village Lake Simcoe/The Kemp Orchard Calgary – only in respect of the charge registered as Registration No. 141 112 373. CURRENT PROPOSED CLASS ACTIONS PARTIAL SETTLEMENTS There have been 5 partial settlements thus far. Please refer to the Sotos website, (search under cases/Fortress) or the FAAN website for details https://www.faanmortgageadmin.com/fortress/english . Sutton/The Link Settlement BDMC and Ildina Galati Estate FFM, Rosalia Spadafora, and Saul Perlov FMP, Tonino Amandola, Michael Daramola, and Graham McWaters Derek Sorrenti, Grant Morgan, and Sorrenti Law Professional Corporation It is important to understand that a class action certification hearing the initial procedural step where a judge will determine if a lawsuit can proceed as a class action law suit. The judge will not decide the merits of the case, but will decide if the claim has a valid cause of action, a defined class, common issues, a suitable representative, and is the preferred method for resolution. UPCOMING CERTIFICATION HEARING FEB 24-26, 2026 Outstanding claims against Fortress Real Developments and the Appraisers (for Progress Manors/Ten 88 & Harmony Village Lake Simcoe/the Kemp only) will be pursued in an upcoming class action certification hearing from Feb 24-26, 2026. To attend the hearing via zoom, please register here: When : Feb 24, 2026 10:00 AM Eastern Time (US and Canada) Topic: MCDOWELL v. FORTRESS REAL CAPITAL INC. et al | CV-16-00560268-00CP Register in advance for this webinar: https://ca01web.zoom.us/webinar/register/WN_rjWIh5YRQKa45NGD4QFKVA How can I get my money back? Many investors have asked us how they can get their money back. We have carefully looked at various avenues for recovery. Other Class Action Pursuits An investigation team comprised of a lawyer, researcher and a forensic accountant had worked diligently with the help of Rose Ray , to create a report that would be used to highlight potential law suits pertaining to Fortress. A potential Class action lawsuit against Lamb Development Corp was filed, however unfortunately the law firm Groia advised they were unable to pursue the lawsuit further. Archived communications regarding this endeavour can be found here . Another law firm, Kallochlian Myers LLP filed a Statement of Claim in 2020 against Olympia Trust Company for the registered funds investors. However, on June 19, 2023, the Court of Appeal for Ontario has dismissed the appeal of the order dismissing the motion for certification. A copy of the decision is available here . If you are an investor who has approached a law firm regarding a class action law suit against other Fortress related parties not mentioned on our website, please let us know. Q & A Current Proposed Class Action Law Suits & Settlements 1. Why wasn't my project / developer chosen for the class action law suit headed by Mitchell Wine and Sotos? This would likely be due to the fact that the lead plaintiffs invested in the particular projects listed above. 2. Why does it take so long to recover the funds for a class action law suit? We understand this is the question most victims ask. Unfortunately, recovering money through a class action lawsuit is not quick or simple. • Class actions take years to move through the courts. • Defendants often fight every step, which adds delays. • Even if successful, legal costs and fees are deducted before any money is shared. Class actions can hold wrongdoers accountable and sometimes lead to financial settlements, but they are a long, uncertain process with no guarantee of full recovery. 3. I didn't receive my class action law suit settlement payment. Who do I contact? Please contact the Claims Administrator - FAAN Mortgages . They can be reached at 1 (833) 495-3338 or by email at info@faanmortgageadmin.com.

VOSMI is a group of investors of Syndicate Mortgages through Fortress Real Developments Inc. We are sharing our stories, and joining together so that our voices can be heard. About VOSMI is a non-profit organization formed by victims of the largest mortgage investment fraud in Canada's history. We are the individuals directly impacted by the Fortress Real Developments Inc syndicated mortgage fraud, coming together to share resources, raise awareness, and support one another. Are you a victim? You are not alone. Our group was first formed on Facebook in 2018 by a victim of the Fortress fraud who felt she had to connect with other Fortress investors. Slowly, the group grew to over 800 members, with hundreds of additional subscribers on our website. We hope this website provides victims and their families with some resources, information, and support. Are YOU a VOSMI? You're not alone. We were promised: 8% fixed interest with with principal secured Investment's backed by the security of the physical property much like a bank with a regular mortgage Loan to Value Ratios were not more than 80% Repayment of principal at end of mortgage term RRSP, TFSA, LIRA eligible Safe & Low Risk Investment What we discovered: The Investment was indeed high risk The Current "as is" value was Grossly inflated The Loan to Value Ratio exceeded 100% up to over 300%. Read more here about the importance of LTV. Failed projects (eg. Collier, Harmony,) resulted in no funds remaining to repay the syndicate investors (ie VOSMIS) The independent legal advice was paid for by Fortress RDI Undisclosed commission fees of 35%, were deducted from investor's principal 8% fees were deducted from the investor's principal Questions about your particular project and investment with Fortress? Please contact FAAN Mortgage Administrators . They were appointed by the courts as trustee over all of the Fortress projects. Linda "I was ashamed that I was duped into doing this investment - I thought that I was smarter than that. This just proves how we were conned." Andrew “The way it was sold to me – and I think everybody – is... you’d be a fool to not want to invest; it was so lucrative. This was a no-brainer. You were investing on real properties and developments. Back then, there was a big condo boom, especially in the Greater Toronto Area (GTA)” you are not alone Thousands were affected. Together, we stand stronger you are not to blame The responsibility lies with those who orchestrated the fraud. Justice takes time The legal process can seem slow and frustrating, but every step brings the truth forward. your feelings are valid Anger, grief and frustration are natural. Healing takes time. Your feelings are valid. You are not alone. We created a word cloud with our investors emotions and reactions as they navigate through this emotional and financial journey. Do these emotions and thoughts resonate with you? Helpful Resources Join our private VOSMI group on Facebook. Sign up for our Newsletter! Helpful victim resources from these sites: CRVC (Canadian Resource for Victims of Crime ) Navigating the Justice System Helping Victims of Fraud Recover The Serious Fraud Office Ontario-Victim Resources “There’s this unfair sense from others who hear these stories that these people should’ve known better, and that’s unfortunate because every one of us in this day and age is susceptible.” Vanessa Iafolla, Anti-Fraud Intelligence Consultant. ‘The forgotten impact’: Helping victims of financial fraud deal with emotional distress CTV News Sep 6, 2025- Pat Tenney

April 1, 2020 Watch Rose Ray's latest update below on the progress in the potential Class Action law suit. Also, if you are able to contribute towards the funding of the investigation and research related to the law suit (to whether the law suit is viable), please complete this form . You can make a payment via credit card (link will take you to Paypal) or you can do a e-transfer to info@vosmi.ca after you completed the form. Thank you!

How to contact us, whether you have a general inquiry, or whether you are an investor. INVESTOR / GENERAL INQUIRIES Please complete your information below and we will get back to you. If you have any project specific questions, please contact FAAN Mortgages . Thank you. Thank you. We will get back to you shortly. Send

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Did you Know? Did you know that the Loan to Value Ratios (value of land compared to the loans provided by the investors for the Fortress projects) far exceeded the Private Lender industry standard? Read more about it here. Did you know that once the RCMP were made aware of the Fortress Syndicated Mortgage fraudulent activity, it only took them 1 month to commence the investigation? How is it then, that FSCO was alerted on multiple occasions since 2011 by numerous people of Fortress SMI activity, however they did not act until after the November 2017 Reuter's article ? Justice Michael Brown issued the RCMP search warrant which was executed on April 13, 2018, as set out in the Globe and Mail story. In order for Justice Brown to issue the search warrant he had to find that there were reasonable and probable grounds that fraud was committed. The following are extracts from the sworn information and attached is part 1 of 6 parts. Extracts from the sworn information: "32. Investigators believe that the key aspects of this Fraud occurred from 2012 to 2017 and are as follows: a. Syndicated Mortgage Investors were presented with inflated “as is” property values securing their syndicated mortgage investment. b. Loan to property value ratios that are in excess of 100%. c. Promotion of the Syndicated Mortgage as RRSP eligible, when the investments that investigators have examined are not RRSP eligible and could be subject to adverse taxation by the Canada Revenue Agency. d. Investment funds being used for purposes other than what was disclosed to investors. A portion of investor funds are not directed to the development project and instead are retained by Fortress Real Capital Inc. at the time of placement of the loan. 33. As a result of the inflated current as is land valuations, investigators believe that there are currently millions of investor dollars, including retirement savings, where the amount of mortgages on the property exceed the current value of the property. This is contrary to what was told to investors. This has created a risk of detriment to the financial and real estate market." The full RCMP document is available here. After you have read this document you will have a better understanding of how you were defrauded. So far CRA has not taken any action despite obviously knowing that the mortgages were not RRSP eligible. If they did take action, the penalty is 50% of the amount you invested plus interest from the date you invested. RCMP Sworn Information.pdf

Index CHAPter 1 baited chapter 2 blinded by those we trusted chapter 3 co-conspirators

Proactive vs Reactive Regulators David Franklin has recommendations on how regulators need to fulfill their government mandate to protect the public. The securities regulators including the Ontario Securities Commission (OSC), and the mortgage regulators, ie Financial Services Regulatory Authority (FSRA), which replaced the Financial Services Commission of Ontario (FSCO) and the law societies including the Law Society of Ontario (LSO) only take action after investors have lost money. Current Complaints Based System These regulators complaints based, and despite knowing that a lot of investors, including wealthy individuals, do not read documents and are financially illiterate, take the position that because there is disclosure, they have protected the public. Under this system, once the investors have lost their money, if they have any money left, they have to sue to be compensated. The court process is costly, and lengthy, and there is no certainty for these investors that they will win. I have been told by investors that using the legal system is thought to be “throwing good money after bad”. In addition, most defrauded investors of the Fortress fiasco, (14,000 investors) have not taken action. Proposed Proactive System-Undercover Agents & Experts Securities regulators and mortgage regulators should share the same staff to act as undercover agents to learn what is being offered in the marketplace. These experts would attend investment seminars, industry association conferences, continuing education seminars, read advertisements, listen to radio and tv infomercials, and other promotional materials, search the internet and YouTube, and as well local and ethnic newspapers. They 'bait' the promoters of these products and act as interested investors. When they are presented with opportunities, they would need the expertise to determine if they were fraudulent or being misrepresented. Once they determined the investment is fraudulent, they would file their report with the regulator, who would the have knowledgeable inspectors or examiners who would go to the promoters to obtain all the documents related to the investment. These parties would not only be looking for the compliance with the respective legislation, but also with the Criminal Code. If they determined there was non-compliance, they would then take action, including contacting the police. Each province should have specially trained staff who have the skills and expertise to investigate and take action. These police forces should have either staff or retain experts in forensic accounting and law. Perhaps the regulators and police could have the same staff or retain the same forensic accountants and lawyers. Funding for this should come from fees charged to those regulated and not from the government/public. Tougher Laws to ensure Conviction Laws should be ammended/created in order to facilitate this and as well to ensure that the perpetrators can be convicted. The parties involved in exempt market securities, real estate and mortgage investments, usually need lawyer’s assistance in facilitating their frauds. Enablers with Benefits ‘Enablers’ in the form of lawyers, accountants, and officials in key ‘access’ positions not only facilitate corporate crimes but are also often the beneficiaries. These facilitators are not always merely ‘hired’ experts but may be the creators and drivers of the international schemes and set-up and head the criminal corporate operations. The law societies should have rules that restrict lawyers from facilitating frauds. Lawyers are required to know who their client is and not assist them in committing illegal acts, which includes fraud. Any seasoned lawyer, after discussions with their client, would know if their client was retaining them to facilitate a fraud and should be obligated to refuse to act. If that lawyer acted, then the lawyer and his firm, should be responsible for all of the losses. For example, what seasoned lawyer after learning that Jawad Rathore had been banned by the Mutual Fund Dealers Association (MFDA) in 2005 and both Jawad Rathore and Vince Petrozza had been sanctioned by the OSC, would agree to act for them in their syndicated equity development mortgage investment proposal, especially since the returns offered to investors was below market rate? Black Bear Homes Fraud Unseasoned lawyers may be attracted to the high volume deals. The law societies should have rules that require and limit lawyers who specialize in areas of commercial real estate investing. The lawyer who acted for the 120 Chinese Black Bear syndicated mortgage investors who lost $9 million should not have been allowed to act given the operator of Black bear Homes, Gary Fraser, was a seasoned criminal. https://www.cbc.ca/news/canada/toronto/syndicated-mortages-1.4078124 Compensation Fund In addition to these recommendations, the provinces should create compensation funds, funded by the regulators, to compensate victims when “a deal falls through the cracks”. These funds could have limits so that the regulators are not insurers of these failed investments. Perhaps a limit of $100,000 per investor as is the case with the Canadian Deposit Insurance Corporation. What do you think about these recommendations?