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
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
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 Corporation
For further information:
For more information on this ongoing dispute, please visit www.tlawsuit.ca.