Ontario Securities Commission Declines to Take Regulatory Action against Trump Tower Developers
TORONTO, Dec. 4, 2012 /CNW/ - In a brief statement issued today, the Ontario Securities Commission informed Heydary Hamilton PC that the Commission will not be pursuing any regulatory action against Talon International Inc., the developer of the Trump International Hotel & Tower. The Commission took the position that its staff considered many factors in considering the issues raised by investors, but determined that it was not necessary to take further action. When asked whether the Commission had made any arrangements with Talon directly, the Commission refused to comment.
The Commission staff would not provide Heydary Hamilton PC with any insight into the rationale for their decision, instead suggesting that investors should, subject to individual legal advice, make an alternative application to the Commission under sections 127 and 144 of the Securities Act.
"I am absolutely shocked that the Commission would decline to take any steps to correct this matter", says Mr. Singh, one of the investors who testified before the Commission staff during their inquiry. "I was sure that, based on all the material that I gave to the Commission staff, they would have easily come to see that there was something inherently wrong with Talon's actions, and that the Commission would do something immediately to fix the situation. I'm extremely disappointed."
"It is disappointing that the Commission staff made the determination that they did," said Javad Heydary, lead counsel for 15 of the investors who have filed, or intend to file, individual claims against Talon and the Trump organizations, including Donald J. Trump. "Nonetheless, we respect the Commission's efforts, and we are currently examining the options open to our clients, including an application to the Commission."
Investors in the Trump Hotel allege that Talon's marketing efforts and representations were not only inaccurate and misleading, but that the representations themselves were contrary to the Ontario Securities Act and a 2004 Ruling of the Commission, which specifically ordered that Talon could not advertise the hotel units as an income-generating investment.
After the release of the Commission's decision today, Talon publicly announced that it will hold all investors to the December 13th closing date, notwithstanding their knowledge that every major financial institution has refused to provide financing for the hotel units, as the financial institutions do not consider the hotel units as residential condominiums. As a result, investors are faced with the dilemma of coming up with the substantial closing costs without any structured financing by December 13th, or taking into consideration of an imminent legal action by not closing on December 13th.
SOURCE: Heydary Hamilton Professional CorporationFor further information:
For more information on this ongoing dispute, please visit www.tlawsuit.ca.