Latest news with #Tarion
Hamilton Spectator
4 days ago
- Business
- Hamilton Spectator
Tarion shelled out tens of millions to homebuyers whose houses were never built. Now it's suing this Ontario developer to recoup those losses
Ontario's homebuyer protection agency is suing a developer to recoup tens of millions of dollars it has paid to purchasers who lost deposits on homes that were never built. In two separate lawsuits filed in February, Tarion is seeking at least $87 million in damages the agency says it has suffered in compensating more than 900 StateView Homes purchasers. The litigation marks a new low in the tumultuous collapse of StateView, which in just three years went from a rising star to being embroiled in scandal and insolvency. In May, Ontario's Home Construction Regulatory Authority charged seven StateView companies and their three executives in 'the illegal sale' of hundreds of pre-construction homes across the Greater Toronto Area. In its lawsuit filed Feb. 12, Tarion sued three StateView Homes executives — brothers Carlo and Dino Taurasi, and former chief financial officer Daniel Ciccone — for alleged breach of contract. The second suit, filed about two weeks later, targets not only the executives, but also their spouses as well as a large group of StateView-affiliated firms. The second lawsuit also alleges fraudulent conveyance and unjust enrichment. Tarion says both statements of claim intend to cover the same losses but the second one has not been served on the defendants. In response to the first claim, StateView Homes CEO Carlo Taurasi, one of the defendants, denies all allegations in a statement of defence. If Tarion has sustained any of the alleged damages, 'those damages are not attributable in whole or in part to any actionable act or omission on the part of Carlo,' he said in the defence. StateView Homes's Carlo Taurasi (left) and Dino Taurasi (right). Ciccone says he intends to defend. Dino Taurasi, vice president of the StateView group of companies, did not respond to requests for comment. An October 2023 Star investigation found StateView collected tens of millions of dollars in deposits from homebuyers for hundreds of homes that it did not have authorization to sell. In at least one case, the developer solicited deposits for unbuilt houses on land StateView did not yet own. Tarion alleges in the Feb. 12 suit that the three executives refused to honour the agreements to indemnify the agency for losses from its repayment of the purchasers' deposit claims, and seeks more than $87 million to cover its deposit payouts and associated fees. Under the agreements, Tarion claims that the Taurasi brothers and the former CFO agreed to 'indemnify and save Tarion harmless' from any losses that may arise resulting from the failure of StateView to perform its obligations, or from the payment by Tarion of the purchasers' deposit claims. An indemnity agreement involves a person other than the builder agreeing to indemnify Tarion if the builder does not satisfy its obligations, according to Tarion. Under a controversial new rule, some homebuyers may end up getting less deposit coverage if things go awry with their builders. Under a controversial new rule, some homebuyers may end up getting less deposit coverage if things go awry with their builders. In his statement of defence, Carlo denied that he is responsible for any alleged unmet obligations to Tarion and denies agreeing to indemnify Tarion from any losses arising from the failures of StateView businesses. The CEO also denies 'being a party to any agreements' with Tarion, and denies that Tarion is entitled to any damages regarding the alleged agreements. 'In any event, the alleged damages are too excessive and too remote,' he states. None of the allegations have been tested in court. The litigation is still in the early stages and there are no scheduled court dates. The second lawsuit, filed on Feb. 27, alleges that the StateView companies have fundamentally breached purchase agreements by failing to construct and deliver the homes to purchasers, failing to hold the deposit in trust, and failing to refund deposits to purchasers. It also alleges the developer failed to indemnify Tarion for all losses and costs that Tarion suffers by StateView's failure to perform obligations. Tarion has not served the statement of claim on the defendants. In Ontario, a claim can be served within six months after filing. The lawsuit identifies the Taurasis, Ciccone and their spouses as well as 15 StateView-affiliated companies as those who could have received the deposit proceeds, and alleges that the recipients have been unjustly enriched by withholding or receiving the deposits from homebuyers. It alleges that the deposit proceeds were transferred out of the StateView companies associated with development projects when StateView knew that it was on the eve of insolvency. Tarion alleges that the developer moved the monies 'with the intent to hinder, delay, or prejudice the purchasers, and/or to prefer the interests of other creditors over those of the purchasers.' Most of the pre-construction developments that StateView Homes marketed between 2020 and 2023 have never been built. Ciccone, a defendant of the claim, told the Star, 'The purported second claim by Tarion has not been served nor did I have any awareness of the action prior to your inquiry. It would be inappropriate for me to comment or for you to publish information relating to a matter which has not been served on the defendants.' The Taurasi brothers did not respond to requests for comment about the allegations contained in the second lawsuit. After a rapid expansion around 2020, at least eight StateView-affiliated companies were put under receivership, and most of the pre-construction developments they marketed between 2020 and 2023 have never been built. The 2023 Star investigation found that the Taurasi brothers appeared to have spent money lavishly when StateView allegedly sold pre-construction homes without authorizations across the GTA. They bought nine units in the Woodbridge industrial plaza for $15 million, one of which was seen at the time storing cars including a 2002 Corvette and a leased Maserati. In 2022, videos posted on TikTok appeared to show Dino Taurasi taking private jet trips, one to the Bahamas and another to Aruba. StateView previously told the Star that it worked diligently to make sure that it had the required approvals for any development. Carlo Taurasi said while StateView always intended to complete all the projects, they could no longer do that because of events that were outside their control. Even if Tarion is successful in its lawsuits, it's unclear how much there'll be to recoup. The statements of claim came at the tail end of a slew of insolvency proceedings where StateView's assets and funds have been distributed to pay back its secured creditors such as mortgage providers and suppliers. One of the firms, StateView Homes (On the Mark) Inc., has been assigned into bankruptcy by a receiver. It owed a creditor $19.6 million at the time and the sale of the company's assets covered about $13 million. Several other StateView firms have been discharged from receivership proceedings after the receiver distributed tens of millions of dollars of funds to the creditors. In one case, StateView Homes (BEA Towns) Inc. owed its 'first priority' creditor nearly $50 million. The receiver said in a report that the sale proceeds of its property would not be sufficient to repay the creditor in full. BEA Towns was previously marketed as a 218-unit townhome project in Barrie. It remained undeveloped by the time the receivership began. In total, Tarion has paid out more than $77 million to more than 950 purchasers who were impacted by StateView's actions, Tarion's spokesperson told the Star. To put that into perspective, the total amount of deposit claims Tarion paid from 2005 to 2021 was about $15 million, just under $1 million per year. The drain StateView homebuyers' deposit claims took on Tarion's war chest played a big part in impelling Tarion to introduce a controversial new measure to require freehold home purchasers to notify the agency within 45 days after entering into a purchase agreement. If the purchasers fail to do so, they may face reduced deposit coverage should anything go wrong with the development. Tarion said the new requirement, set to kick in on July 1, will help identify rogue builders earlier but critics say it could end up punishing consumers instead of proactively policing the new home construction industry.
Toronto Star
4 days ago
- Business
- Toronto Star
Will Carney compromise on this emissions cap? + A grieving mother demands answers
Good morning. This is the Friday, June 6 edition of First Up, the Star's daily morning digest. Sign up to get it earlier each day, in your inbox. Are you planning to drive in the city this weekend? The roads will be buzzing with everything from grilled cheese battles to bridge repairs. These are the road and highway closures to watch out for. Here's the latest on a potential climate compromise from Mark Carney, Ontario's homebuyer protection agency suing a developer, and a Toronto mom demanding answers after her son fell to his death from their balcony. ARTICLE CONTINUES BELOW DON'T MISS Insiders say Mark Carney could compromise on a Trudeau-era emissions cap Carney's government might weaken or cancel the incoming oil and gas emissions cap. Here's why. Andrew Phillips: Mark Carney is proving to be very popular — with conservatives. Donald Trump's tariffs on Canada are likely here to stay, U.S. ambassador insists Tarion is suing an Ontario developer to recoup losses to homebuyers In two separate lawsuits, Ontario's homebuyer protection agency is seeking at least $87 million in damages. Ontario developer charged for 'illegal sale' of hundreds of pre-construction homes City staff recommend allowing sixplexes across all Toronto neighbourhoods A grieving mom is seeking answers after her son fell from their balcony The seven-year-old slipped from a balcony that was under construction with no rails or barriers. 'A cheerful student with a kind heart': Six-year-old boy dies after falling from balcony at North York highrise, as neighbour recounts mother's cries Six-year-old boy critically injured after falling from window of 10th-floor apartment in Toronto WHAT ELSE New TTC CEO Mandeep Lali, prior to being announced as the next CEO in charge of the TTC, in Scarborough, June 5, 2025. Andrew Francis Wallace Toronto Star Edward Keenan: Will Mandeep Lali's experience be enough to get Toronto's transit back on track? A Southwestern Ontario infant born prematurely with measles has died. Here's what we know. Canada introduced proposed citizenship by descent legislation yesterday. Here's how it would work. In their own voices: What my village in India taught me about Canada's immigration debate. Canadian public opinion of the U.S. hits a new low after Donald Trump's election. The president and Elon Musk are going through a messy public breakup. Take a look. Rogers Stadium is 'on track' to open this month. See the progress so far. Here are the five movies our critic is most excited about this month. Stratford Festival 2025: What shows to see — and skip — this season. Rick Salutin: The weird, wondrous and extremely painful world of Larry Zolf. NBA Draft: Here's why Frenchman Noa Essengue makes a whole lot of sense for Toronto. Tyrese Haliburton's buzzer-beater stunned SGA and Oklahoma City in Game 1 of the NBA Finals. POV These four leaders took Toronto through COVID-19. You think you know their stories. You have no idea. CLOSE UP First Nation dancer River Christie-White performs a hoop dance, accompanied by the Eagle Heart Drum group, in the grand hall of the AHT, celebrating its grand opening. Anishnawbe Health Toronto celebrates the grand opening of its health centre, with remarks by dignitaries and performances by Indigenous artists. Michelle Mengsu Chang Toronto Star CHERRY STREET: River Christie-White performs a hoop dance, accompanied by the Eagle Heart Drum group, in the grand hall of Anishnawbe Health Toronto's new Indigenous Health Centre. Traditional practices and western medicine will be blended at the new centre. Here's how it all came to be. Thank you for reading. You can reach me and the First Up team at firstup@ I will see you back here tomorrow. Sign up here to get this newsletter in your inbox.
Hamilton Spectator
23-05-2025
- Business
- Hamilton Spectator
Ontario developer charged for ‘illegal sale' of hundreds of pre-construction homes
Ontario's homebuilding regulator has charged a developer for 'the illegal sale' of 453 pre-construction homes across the Greater Toronto Area. The Home Construction Regulatory Authority (HCRA) announced Tuesday that it has laid charges against seven companies operating under StateView Homes and the firm's three senior executives. Before a builder can sell a new home in Ontario, it must obtain a licence from the HCRA and receive approval from Tarion in what's known as a Qualification for Enrolment (QFE). It is a provincial offence to sell a home without both authorizations. 'Compliance with all regulatory requirements is not optional. Builders who do not meet these obligations are operating illegally, and the HCRA will take strong enforcement action,' said Wendy Moir, the HCRA's Chief Executive Officer and Registrar. An October 2023 Star investigation found StateView collected tens of millions of dollars in deposits from homebuyers for hundreds of homes that it did not have authorization to sell. In at least one case, the developer solicited deposits for unbuilt houses on land StateView did not yet own, the Star found. StateView Homes did not immediately respond to questions about the HCRA charges. The company previously told the Star that it worked diligently to make sure that it had the required approvals for any development. Under a controversial new rule, some homebuyers may end up getting less deposit coverage if things go awry with their builders. Under a controversial new rule, some homebuyers may end up getting less deposit coverage if things go awry with their builders. StateView, led by brothers Dino and Carlo Taurasi, underwent a rapid expansion around 2020 before unspooling into collapse. Eight StateView-affiliated companies have been put under receivership, and most of the pre-construction developments they marketed between 2020 and 2023 have never been built. The Taurasi brothers, as well as former CFO Daniel Ciccone, are also charged with failing to take reasonable care to prevent the violations, the regulatory authority said. A lawyer who represents Ciccone did not immediately respond to request for comment. The HCRA began investigating StateView in 2023 and has since suspended its licences. The regulator said that the scale of StateView's alleged violations and the ensuing financial harms prompted the agency to pursue charges against both the company and its leadership. Hundreds of homebuyers were left without the homes they put deposits on – and without the money they forked over. According to an unaudited report filed in StateView's receivership proceedings, the developer collected $50.6 million in deposits for five free-hold projects between 2020 and 2023. These spurned buyers have turned to Tarion, Ontario's protection agency for new home buyers, to be compensated for their lost deposits. There has been a surge in deposits lost in recent years to illegal sales, prompting Tarion to introduce a controversial change to its compensation formula for deposit coverage. Left unchecked, Tarion warned it might not be able to afford to cover homebuyers' losses. So the agency introduced a new requirement for purchasers of new freehold homes to notify the agency within 45 days after entering into a purchase agreement. If they fail to do so, they may face reduced deposit coverage should anything go wrong with the development. Tarion has said the measure, set to kick in on July 1, will help the agency identify illegal sales earlier in the process. Consumer advocates, however, say instead of punishing homebuyers, regulators should better proactively police the industry to catch rogue developers.
Cision Canada
20-05-2025
- Business
- Cision Canada
HCRA LAYS CHARGES AGAINST STATEVIEW HOMES AND ITS EXECUTIVES
Charges build on earlier regulatory action, reinforcing accountability in Ontario's homebuilding sector TORONTO, May 20, 2025 /CNW/ - The Home Construction Regulatory Authority (HCRA) has laid charges against seven companies operating under Stateview Homes in connection with the illegal sale of 453 homes. Three senior leaders of the company – Dino Taurasi, Carlo Taurasi, and Daniel Ciccone – have also been charged for failing to take reasonable care to prevent these violations. The charges follow an HCRA investigation that uncovered hundreds of violations of the New Home Construction Licensing Act, 2017 and the Ontario New Home Warranties Plan Act. These include selling dozens of homes while unlicensed and failing to obtain the required Tarion approvals or enrolments in Ontario's new home warranty program for hundreds of homes, even after becoming licensed. "To legally sell new homes in Ontario, builders must be licensed by the HCRA, obtain Tarion authorization, and enrol each home in the warranty program," says Wendy Moir, the HCRA's Chief Executive Officer and Registrar. "Compliance with all regulatory requirements is not optional. Builders who do not meet these obligations are operating illegally, and the HCRA will take strong enforcement action." The HCRA suspended Stateview's licences in July 2023 to immediately protect consumers from further risk. Following a thorough investigation, the scale of violations and the financial harm involved prompted the HCRA to pursue charges against both the company and its leadership. "Ontario homebuyers deserve confidence that their builder is acting in good faith and complying with the law," says Moir. "When builders fail to meet their legal obligations, the HCRA will take every necessary step to hold them accountable, protect consumers, and maintain confidence in the new home marketplace." About the HCRA The Home Construction Regulatory Authority is responsible for regulating and licensing the people and companies who build and sell new homes in Ontario. The HCRA enforces high professional standards for competence and conduct in the homebuilding industry, giving new home buyers confidence in one of the biggest purchases of their lives. The HCRA also maintains consistency across the sector, curtailing unethical and illegal builders. – the authoritative source of background information about each of Ontario's 7,000 new home builders and sellers.
Hamilton Spectator
16-05-2025
- Business
- Hamilton Spectator
Buying a new house in Ontario? Rule change could penalize those who don't register
There's a big change coming for Ontarians looking to buy a new home this year. Starting on July 1, buyers are encouraged to notify Tarion , the province's new home warranty provider, of their purchase of a new or preconstruction home within 45 days. As of 2026, if they fail to do so, they'll be insured for less of their deposit, should anything go wrong with the project. 'It's a step to notify us that you've entered into an agreement,' said Tarion CEO Peter Balasubramanian. 'And then that helps us keep track of what's happening.' An independent non-profit established in 1976, Tarion has a mandate to protect buyers of new homes in the province. For example, if a builder goes bankrupt and runs off with a buyer's deposit, the consumer can make a claim to them. The new step only applies to buyers of new freehold homes, not condos. Tarion has developed a new online portal where buyers can register their purchases, and enter information such as the home's address, their deposit amount and the builder. This helps Tarion identify whether the builder is legal, and if they're not they will stop consumers from giving them any more money, Balasubramanian said. Under new provincial legislation, as of Jan. 1, 2026, if you don't register within 45 days you'll be put into a pool with other buyers who also didn't register, which is capped at $10 million per year, Balasubramanian said. As for how much your deposit is insured for, it depends how many other buyers there are who are looking for their deposits back. 'If there's not enough to go around, you would end up getting less. And that's a real risk,' said Balasubramanian The Star's Sheila Wang wrote about some of the pitfalls with the registration system in February. Last year, Tarion paid out the largest consumer protection payout ever of around $80 million, Balasubramanian said, to almost a thousand homebuyers who lost deposits. This was because of an increase in receiverships, where a third party takes control of a troubled company that's not paying back debt, Balasubramanian said, as well as a couple of cases of illegal builders. 'The experience of last year really threw it into high relief how vulnerable the fund could be to a fraudulent actor,' he said.
