Toronto-Domion Bank (TD) has filed suit against developer StateView Homes over $37 million in alleged fraudulent cheque activity.
While 25 other entities have been named in the suit, the allegations centre around Chief Financial Officer Daniel Ciccone—who has been “relieved of his position,” according to the developer.
At least one other lender is also filing a claim in an effort to recover loaned funds, including demands for receivership and property sales as necessary.
Among other assets, TD’s settlement would place a hold on StateView’s Elm & CO. project: a townhouse development located at York Durham Line and Bethesda which is currently in the pre-construction phase.
While StateView downplays risks to purchasers, there are grave concerns regarding over-leveraged properties and the threat of insolvencies—which could lead to deposit losses.
“At this time, StateView Homes is not declaring bankruptcy,” StateView said in a recent statement. “We are doing everything in our power to return to normal funding operations.”
“StateView intends to complete all projects currently under construction and is actively working with our partners to move forward with as many projects as possible while also recognizing the position of our lenders,” they added in their statement.
However, as Elm & CO. is not under construction and has yet to go through the approvals process, uncertainty remains for the Stouffville development.
Bullet Point News inquired about the project’s future. “As the situation is part of an ongoing investigation, StateView Homes cannot comment on the status of the Elm & CO. project at this time,” we were told.
