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Regulators in the news 202 0 FSRA Imposes administrative Penalty of $250,000 on Fortress Real Development Inc. September 19, 2020 2018 Ontario watchdog revokes licence of Fortress' lead mortgage broker Feb 2, 2018 Financial Post FSCO reaches $1.1 million settlement over syndicated mortgages Feb. 2, 2018 Financial Post Regulators leave Fortress investors exposed to mortgage industry Dec. 16, 2018 The Globe and Mail Fortress investors call for restitution from regulator Dec. 17, 2018 The Globe and Mail 2017 The lax oversight of syndicated mortgage is hurting Ontario investors with little relief in sight April 24, 2017 Financial Post Canada regulator ignored warnings on risky mortgage investments Nov 30, 2017 Reuters 2016 Regulators put syndicated mortgages in their crosshairs Nov , 2016, MacLeans Ontario urged to boost financial protection for consumers June 20, 2016 The Star

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!

Fortress Project Outcomes – Summary Analysis The following analysis is based on records obtained from FAAN Mortgage Administrators , the court-appointed trustee following the RCMP raid of Fortress. These records include information filed with the court and documentation published by FAAN. During the trial, the defence stated that Fortress had many “successful” projects. While some projects did return investor funds in full, a significant number of projects failed. As shown in the tables below, 28 development projects returned only a portion of the invested principal, while 18 projects did not return any principal to investors. Based on the available records, the total investor loss to date is approximately $428 million. In addition, two projects have not yet exited and remain in distress. Investors seeking information specific to their project status or outcome are encouraged to contact FAAN Mortgage Administrators, the trustee overseeing the administration of these projects. Outcome Summary of Fortress SML Projects (post 2018) Projects with No Repayment to SML Investors Projects with Partial Repayment to SML Investors Projects with Full Repayment to SML Investors Projects in Distress The following is a summary in presentation form of the Fortress Projects and review of total funds paid to investors and total losses. Please view this presentation on your PC or iPad for optimal viewing

Darryl Levitt Law Darryl Levitt practises law Ontario and is also qualified as a lawyer in South Africa. His area of expertise is corporate finance, energy, and white collar crime investigations. Darryl has worked on many high-profile assignments including the merger of Petro Canada and Suncor for a value of $55bn, the IPO of First Uranium for $265m, the RTO of Pelawan and concurrent financing of $165m. He has also worked on public interest matters including the recent Air Ethiopia aviation disaster, and a large multinational securities law violations case and whistleblower filings. Prior to starting to his own practice, Darryl was a senior lawyer at two multinational law firms. Darryl has consistently been recognized by his peers and clients by the independent WWL as a leading global practitioner in his area of practise. Darryl Levitt Law Counsel Deloitte Building 400 Applewood Crescent Suite 100 Vaughan ON, L4K 0C3 Darryl@darryllevitt.com Reception: 905-482-8089

Mitchell Wine & Margaret Waddell legal team About the legal team Click here to read Mitchell Wine's bio. Click here to read Margaret Waddell's bio. Class Action Law Suit The actions relate to the SMLs registered on five different Fortress real estate developments: Collier Centre – Barrie, ON (only with respect to the original loan) Progress Manors Ten88 – Toronto, ON Sutton/The Link – Burlington, ON Harmony Village Lake Simcoe/The Kemp – Barrie, ON Orchard Calgary – Calgary, AB Partial settlements were reached and approved by Justice Perrell on January 13, 2023. Further details, including the statements of claim, and contact information are available on the Sotos Class Action website -(enter "Fortress" in the search bar) Settlement and payouts are carried out by FAAN Mortgage Administrators, Further details on payouts can be found on FAAN's website .

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September 13, 2019 Protest at the Law Society of Ontario & Ontario Ministry of Finance Read More October 4, 2019 Protest at The Ontario Legislative Assembly (Queen's Park) Read More October 18, 2019 Protest in Ottawa at Parliament Hill Read More

Criminal Trial - R. v. Rathore & Petrozza The criminal trial of R vs Rathore & Petrozza, principals of Fortress Real Developments Inc., began in October 2024 and concluded with a verdict in May 2025. A sentencing submissions took place on December 3, 2025, and the sentencing hearing is scheduled on February 2, 2026. This page provides key information about the trial, its outcomes and related media coverage. About the Criminal Trial Trial Background Courthouse Location Q & A Media Coverage Up Trial summary Crown Prosecutor, Defense opening arguments & witness testimonies Read More > closing arguments Summary of Crown Prosecutor & Defense closing arguments Read More > Verdict Justice D Moores verdict & reason for decision Read More > Sentencing Sentencing Submission Hearing Dec 3/25 Read More >

Fortress Promo Material The following are examples of the promotional material used by Fortress in promoting syndicated mortgage investments. Collier Termsheet Termsheet for the Collier project which was presented to the Syndicate Mortgage investors. Notice the terminology: "Face amount of your investment is fully Registered & Secured via a charge against the property." Sky City Ternsheet Similar features are repeated in this term sheet which was provided to the investors. Note that the theme of these promo materials are the same across all of Fortress projects. "Face amount of your investment is fully Registered & Secured via a charge against the property." This project began as a parking lot, and ended as a parking lot. Where did all the investors money go? Services This is your Services section. This is a great place to give more information about the services you provide. You can write a general description of what your business offers then add more details below. This section can be adapted for your website. You may choose to highlight other things like courses or programs, or to share special features about your business that you want to promote. Double click on the text box to edit the text and make it your own. Custom Project Personal Solution Planning Expert Guidance Package

Did you Know? What's an LTV and why does it matter? The loan-to-value (LTV) ratio shows how much money is being borrowed compared to the actual value of the land. The land is supposed to be the safety net for investors: if a project fails, the land can be sold and the loan repaid. A lower LTV means more protection, because the land is worth more than the loan. Typically, lenders will not lend more than about 85% of the land’s value. If the land is overvalued, investors are exposed to much greater risk. In the case of Fortress Real Developments, the land values were inflated, and investors were misled into thinking their money was secure, when it wasn't. For example, in the Collier Centre Project (Barrie, ON) investors lent $16.9 million to the project. They were told the land was worth $21.9 million, which suggested an LTV of about 77% -appearing safe. But in reality, an appraisal showed the land was worth only $7 million. The $21.9 Million figure was a future based evaluation. That meant the true LTV was over 200%. This was far riskier than investors had been led to believe.When the project collapsed, the land sale could not cover the debt. Since investors were also ranked fifth in repayment priority, there was no money left to pay them back . Another supposed advantage to investing in Fortress SMLs was the 8% interest rate. This rate 8% was far more attractive than GIC's, or bonds. What you weren't told, was about returns provided in the mortgage market. Under MBLAA, the following comparative information was required by law to be disclosed to you by FSCO licensed parties. Did you know that the private lenders who lend on first mortgages on commercial properties only lend 65% of their as-is appraised value at 9-12%. Land loans on farmland are done by few private lenders and they loan 50% of their as-is appraised value. Private lenders will provide first mortgages on houses up to 80% at 8% return, and on second mortgages lend up to 85% of as-is appraised value at 10-15% for a one year term. Compare these loan to values and returns, to your 8% return at well over 100% of as-is appraised value. Fortress did not provide as-is values. They provided opinions of value, which are not appraisals. Fortress opinions of value were based on future value. You were equity investors in these projects, which means that you should have received an ownership interest in the project and/or share of profits, as you were unknowingly were taking a lot of risk. Even as an equity investor you would not invest if your investment was much more than 100% of as-is appraised value. Fortress stated in their marketing and legal documentation that their LTVs were based on "as is" values- where in reality the LTVs were based on future values. This misrepresentation was detrimental to your investment, because if something went wrong with the project, there would not be enough assets to repay the investments as the loan was much higher than the value of the land. There are a few lenders who provide soft cost loans to developers by way of a first mortgage at 20-30%, plus fees, and these lenders do not postpone to construction financing. Meaning, if they lend money towards a project, they only do so on the condition that their position in rank cannot be moved or postponed. If they lend as 2nd mortgage, they stay at 2nd without any sneaky clauses that postpone them to 3rd. Do you think that this is a good comparison to the Fortress mortgages you invested in? Your return was 8%. Remember how you were promised 2nd mortgage, but you were moved like a hot potato to 3rd, 4th or even 5th mortgage? A private lender would never, ever, sign-off on such an agreement. The reason the lenders charge these rates and fees is because they know that they can lose money if the land is not rezoned and even if it is, that the developer does not get the necessary presales, that they will lose money. All the benefits went to Fortress. They collected a 35% fee and 50% of the profits. The investors took all of the risk and only were to be paid 8%. This structure was completely unfair to investors. Now you understand why the RCMP obtained its search warrant. Fraud, section 380 of the Criminal Code, includes misrepresenting the value and placing the victim at risk of economic harm.

" Independent Legal Advice" Most of our members received "Indpendent Legal Advice" prior to investing the Fortress Syndicated Mortgages. We conducted a survey from 154 investors. These are the survey results. ILA Member Survey Results.pdf