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Exploring a Class Action Law Suit for Fortress Investors Investigative Team & Updates the research of Class Action Law Suits A great deal of research was undertaken with regards to class action law suits for the Fortress syn dicated mortgage investors. The Investigative Team was comprised of the following professionals: • Darryl Levitt (lawyer; Darryl Levitt Law ) • Dave Oswald (forensic accountant, Forensic Restitution ) • Bruce Livesey (private investigator; i20 Research Inc .) Rose Ray, a broker, worked tirelessly with this team in its effort to pursue a class action law suit that would benefit the victims. Here are the updates we were provided by Rose and the team. Although it is unfortunate that a class action law suit did not come to fruition, we thank Rose and the team for their incredible efforts and countless of hours in their work to try to bring justice to the syndicated mortgage victims. Updates from Rose Ray (2019-2022) Video dated Nov 29, 2019 An anonymous investor has contributed $50,000 to help fund this investigation to help bring the research to the next level. Our ask is for the Fortress investors to contribute $100 (or an amount they can afford) to help reimburse the investor's generous contribution. Click here to view video. Click here to read Darryl Levitt's letter to investors. Note: Contribution form has since been updated - see April 22, 2021 update. Video dated Feb 3, 2020. Click here to view video. Summary: Reminder to investors to save their documents pertaining to their investments in case the team requires the files. Promissory note holders to contact Rose as well as they will be addressed separately from SML investors; as well as investors who were "transferred" from one project to another knowingly or unknowingly. Promotional materials, recordings of events would be appreciated as well for the projects listed in the above paragraph. Video dated March 11, 2020. Click here to view video. Investigative work is ongoing. Rose requesting investors to write to FAAN (details in video.) (Note: This ask is no longer required) Video dated April l, 2020. Click here to view video. Summary: Key Parties identified; Fortress, Project owners/corporations/key personnel; Auditors, Trustees, Developers, Appraisers & evaluators, agents, brokers & law firms.1st two projects of interest to pursue initially: Sky City & Colliers. I nvestigative reports have been compiled; Investigative Team is in discussion with law firms and litigation funders. Video dated May 17, 2020. Click here to view video. Summary: Update from Rose on Funding. Approximately $14,000 has been contributed from investors to date. Videos dated April 12, 2021 Video regarding law firm Groia & Company. Click here to watch the video & here to read the statement of claim regarding BRAD J. LAMB REALTY INC., BRAD J. LAMB, and LAMB DEV. Please ensure you read the statement of claim to see whether your project is included. Video regarding lawyers Mitchell Wine & Margaret Waddell. Click here to watch the video. Please refer to this page for further information on the class action law suits & statements of claim regarding the following projects: The Orchard, Progress Manors (Ten 88); Sutton; Colliers; Harmony Simcoe. April 22, 2021 There has been a lot of excitement regarding the mew class action law suit announcements pertaining to the law suits led by Groia & Company law firm and the Mitchell Wine & Margaret Waddell team. The investigative team lead by Darryl Levitt has been working very diligently to help us. June 6, 2022 Update from Rose Ray regarding Brad Lamb Class Action Law Suit. "I wanted to bring everyone up to speed on the status of the class action we have been working on for the past 2yrs. As you know, a law firm by the name of Groia had filed a Statement of Claim about a year ago for a class action lawsuit against Brad Lamb. Unfortunately Groia was not able to continue with the law suit as they could not find funders to commit to funding the law suit. As soon as we were informed of this news, Corinne and I communicated with another law firm in the hopes they would take on the law suit. Unfortunately after carefully reviewing the files and information, they declined as well. At this point, neither can pursue this lawsuit. ALL lawyers agree that fraud has taken place, no one disputes that. The issue is Legally do they have enough evidence that proves Brad Lamb KNEW that investors were mislead and what is his direct liability, unfortunately the opinion is that we don’t have enough evidence. Even though we have provided hundreds of documents, videos etc.. there is not enough certainty that our case will win. This means the risk and the cost are just too high for a funder and for a law firm to take on. Remember if a law firm loses, they have to pay all the costs of the other law firm, and we are talking about millions of dollars for this type of case. This is not the news we wanted to deliver to you. We have invested countless hours pursuing a way to get funds back to investors. However, we have exhausted all avenues for a class action lawsuit. Thank you to all that were willing to assist by providing files etc. The investor who provided the initial funds for all the work that was done, is still out an additional $18,100. To all those who contributed to reimbursing – THANK YOU. It is unfortunate that more investors did not contribute, since this investor took a huge risk to try and find justice for all of us, it would be a nominal amount if all contributed. The news we have received is an additional blow for sure to this investor. If any of you have not contributed , and would be willing to help alleviate the financial burden for this investor, you may send an e-transfer to info@vosmi.ca . Any amount would be appreciated. ($20-$100). Other payment arrangements are accepted such as a cheque or PayPal ."

These are basic questions & answers for investors and the public regarding the VOSMI. FAQ What is VOSMI? Victims of Syndicated Mortgage Investments. What are Syndicated Mortgages? A Syndicated Mortgage is a group of individuals who lend money privately to a borrower to finance real estate developments, such as residential condo buildings. I am an investor of Fortress Real Development SMIs. What can I do? Join our group so that you can stay updated on projects group discussions. You will be required to fill out a questionnaire prior to your admission to the group. Once we have confirmed that you are an investor, you will be able to sign into the member portal. Can I join your group if I did not invest with Fortress RDI? Our group is dedicated to individuals who invested in Fortress Real Development Investments. You can follow us on twitter & keep checking our main website for new updates & VOSMI stories.

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

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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?

About The Investors/VOSMI VOSMI is a group of victims who invested in Syndicate mortgage investments through Fortress Real Developments. A syndicate mortgage is a group of individuals who lend money privately to a borrower to finance real estate developments, such as residential condo buildings. The investors were led to believe these were safe, low risk investments. The Real Estate Developer Fortress Real Developments Inc., based in Richmond Hill, ON was a real estate developer that was active between 2008-2018. Their portfolio spanned residential and commercial projects. Fortress raised about $900 million through syndicated mortgage loans from around 14,000 investors. In April 2018 the RCMP IMET raided the headquarters of Fortress RDI. The investigation revealed inflated property values and misuse of funds. The losses for the investors were substantial, with some losing their life savings. Although many experts warned the financial regulators (FSCO) about Fortress & their practices as early as 2012, they did not take action until 2018. RCMP In 2022, co-founders Jawad Rathore and Vince Petrozza were charged with Fraud related to their SML scheme. Criminal Trial In May 2025 both were convicted of fraud over $5000. The sentencing hearing (where victim impact statements will be heard), is to take place December 3, 2025. Are you a VOSMI? Did you invest in a Fortress Real Developments Syndicated Mortgage? Are you a victim of syndicated mortgage investment fraud? Were you promised a safe investment with 8% returns? If you are a victim? Join our private Facebook group .