Cacoeli Asset Management Inc. et al., Receivership

Cacoeli Asset Management Inc. et al., a group of companies that operate as a private equity firm, had a monitor appointed under section 129 of the Ontario Securities Act on application by the Ontario Securities Commission.

The companies operate in the real estate-focused private equity and asset management industries. Their business is to identify undervalued residential real estate properties, usually multi-unit rental apartments, and then purchase the properties for renovation or redevelopment.

Cacoeli allegedly told investors they could profit from cash flow during the life of the project or at the end of the project when the real property would be sold at a profit. The Enforcement Division of the OSC investigated Cacoeli’s business and says it found evidence that Cacoeli has been perpetrating a fraud on investors since around June 2021. The OSC alleges that Cacoeli diverted investor funds earmarked for a specific property to other, unrelated properties without informing investors.

Grant Thornton was appointed monitor—a court-appointed officer with powers to monitor the business of Cacoeli to ensure that no actions are taken that would be improper or prejudicial to investors. The application to appoint Grant Thornton as full receiver is scheduled for March 24.

Counsel is Aird & Berlis for the monitor, Adair Goldblatt Bieber for Cacoeli, Blaney McMurtry for Terra Bona Developments, Scalzi Caplan for Clifton Blake Capital, Gowling WLG for CMLS Financial, Devry Smith Frank for Cosman Mortgage Holding Corp., Stockwoods for MCAP Financial, Levy Zavet for Vault Capital, and Laishley Reed for Pollard & Associates.