On December 18, 2024, the Trustee served materials seeking an order that, among other things:

- approves the Soba Settlement Agreement; and

- authorizes the Trustee upon receipt of the $350,000 ("Settlement Payment") to distribute 65% of the Settlement Payment to the investors in the Soba Project

The Sutton Settlement Agreement discussed in detail in the Trustee's Sixth Report to Court contemplated certain parties requesting certain orders from the Court and the Class Action Court.

On July 5, 2023, the Court granted the following orders:

An order dismissing Olympia Trust Company’s Third Party Claim against ADI DEVELOPMENTS (LINK) INC. (F.K.A. ADI DEVELOPMENTS SUTTON INC.), ADI DEVELOPMENT GROUP INC. and TARIQ ADI with prejudice and without costs; and,

An order granting Sutton Plaintiff’s Counsel leave to dismiss the Sutton Class Proceeding as against the named ADI defendants and dismissing the Sutton Class Proceeding as against the named ADI defendants with prejudice and without costs.

On June 1, 2023, the Court granted the following orders:

an order approving the Sutton Settlement Agreement (“Sutton Settlement Agreement Approval Order”);

an order (“Sutton Distribution Order”) approving the distribution of the Settlement Payment, to be received in respect of the Sutton Project, on a pari passu basis to the syndicated mortgage lenders who advanced funds pursuant to the Sutton 2012 Loan and the Sutton 2014 Loan; and

an order (“Fouth Omnibus Order”) approving:

an amendment to paragraph 3 of the First Omnibus Order, as amended by the Third Omnibus Order, to replace all references to “65%” with “75%”, so that the Trustee shall be required to distribute 75% of any Realized Property pro rata to the Investors entitled to such funds following the receipt by the Trustee of a further $10 million of Realized Property (in addition to the Initial Payment received in respect of the Sutton Project), whether received before or after the date of the Fourth Omnibus Order;

the Sixth Report and activities of the Trustee described therein; and

the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from March 1, 2022 to February 28, 2023.

On March 31, 2022, the Trustee served materials in connection with its motion returnable April 12, 2022 in support of its request for an Order (“Third Omnibus Order”), among other things:

Approving an amendment to paragraph 3 of the First Omnibus Order to replace all references to “50%” with “65%”, so that the Trustee shall be required to distribute 65% of any Realized Property obtained pro rata to the lnvestors entitled to such funds, whether received before or after the date of the Third Omnibus Order;

Authorizing a distribution to the applicable Investors in an amount equal to 65% of the Realized Property, whether received before or after the date of the Third Omnibus Order, including authorizing and directing the Trustee to distribute:

to the Progress Investors 65% of the residual proceeds received by the Trustee from the Progress Sale Transaction; and

to the Unionvillas Investors 65% of the initial distribution received by the Trustee from the Unionvillas Receiver; and

Approving the (i) Fourth Report and the Fifth Report and activities of the Trustee described therein; and (ii) Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from March 1, 2021 to February 28, 2022.

Copies of the materials filed on March 31, 2022, including the Trustee’s Fifth Report, are available below.

On April 12, 2022, the Court granted an Order (“Third Omnibus Order”):

Approving an amendment to paragraph 3 of the First Omnibus Order to replace all references to “50%” with “65%”, so that the Trustee shall be required to distribute 65% of any Realized Property obtained pro rata to the lnvestors entitled to such funds, whether received before or after the date of the Third Omnibus Order;

Authorizing a distribution to the applicable Investors in an amount equal to 65% of the Realized Property, whether received before or after the date of the Third Omnibus Order, including authorizing and directing the Trustee to distribute:

to the Progress Investors 65% of the residual proceeds received by the Trustee from the Progress Sale Transaction; and

to the Unionvillas Investors 65% of the initial distribution received by the Trustee from the Unionvillas Receiver; and

Approving the (i) Fourth Report and the Fifth Report and activities of the Trustee described therein; and (ii) Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from March 1, 2021 to February 28, 2022.

Copies of the Third Omnibus Order and the related endorsement are available below.

On March 31, 2022, the Trustee served materials in connection with its motion returnable April 12, 2022 in support of its request for an Order (“Third Omnibus Order”), among other things:

Approving an amendment to paragraph 3 of the First Omnibus Order to replace all references to “50%” with “65%”, so that the Trustee shall be required to distribute 65% of any Realized Property obtained pro rata to the lnvestors entitled to such funds, whether received before or after the date of the Third Omnibus Order;

Authorizing a distribution to the applicable Investors in an amount equal to 65% of the Realized Property, whether received before or after the date of the Third Omnibus Order, including authorizing and directing the Trustee to distribute:

to the Progress Investors 65% of the residual proceeds received by the Trustee from the Progress Sale Transaction; and

to the Unionvillas Investors 65% of the initial distribution received by the Trustee from the Unionvillas Receiver; and

Approving the (i) Fourth Report and the Fifth Report and activities of the Trustee described therein; and (ii) Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from March 1, 2021 to February 28, 2022.

Copies of the materials filed on March 31, 2022, including the Trustee’s Fifth Report, are available below.

On January 31, 2022, the Court granted the Progress Approval and Vesting Order that, among other things, confirms and approves the Trustee and Olympia Trust Company discharging the Progress Mortgage and vests all of the Borrower’s right, title and interest in and to the Purchased Assets described in the agreement of purchase and sale in the Purchaser.

A copy of the Progress Approval and Vesting Order and the related endorsement is provided below.

On Januray 14, 2022, Empire Pace (1088 Progress) Ltd., the Progress Project borrower (“Borrower”) served motion materials in connection with its motion returnable January 31, 2022 in support of its request for an Order (“Progress Approval and Vesting Order”) that, among other things:

Confirms and approves the Trustee and Olympia Trust Company discharging the Progress Mortgage in connection with the Sale Transaction upon receipt of the Sorrenti Discharge Payment;

Vests all of the Borrower’s right, title and interest in and to the Purchased Assets described in the agreement of purchase and sale in the Purchaser, free and clear of and from any and all claims; and

Seals certain confidential information concerning the Sale Transaction and the sale process, until further order of the Court.

The Borrower’s motion materials include, among other things, a report to Court from the Trustee in support of the Borrower’s request for the Progress Approval and Vesting Order. The Trustee’s report describes the following matters:

an overview of the Progress Project and the underlying Sorrenti syndicated mortgage loan pursuant to which certain of the Investors loaned money in respect of the Progress Project;

the details of the Progress Sale Transaction;

the details of the marketing process conducted for the Progress Property;

information that supports the Trustee’s recommendation to discharge the Progress Mortgage in connection with the Progress Sale Transaction upon receipt of the Sorrenti Discharge Payment, and to take any other steps necessary to facilitate the closing of the Progress Sale Transaction, in its sole discretion; and

a confidential appendix that includes an unredacted copy of the APS and provides, among other things, a summary of the offers received for the Progress Property, the financial details of the Progress Sale Transaction and the estimated Realized Property available for distribution to the Progress Individual Lenders.

Copies of the materials filed on January 14, 2022, including the Trustee’s Fourth Report, are available below.

On May 4, 2021, the Court granted an order (“Second Omnibus Order”) approving the Third Report of the Trustee dated April 23, 2021, as well as the Trustee’s activities described therein, and the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from February 1, 2020 to February 28, 2021.

A copy of the Second Omnibus Order and the related endorsement is provided below.

On April 23, 2021, the Trustee served materials in connection with its motion returnable May 4, 2021, which provides, among other things, an update regarding the proceedings and a recommendation that the Court grant an order approving the Third Report of the Trustee dated April 23, 2021, as well as the Trustee’s activities described therein, and approving the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from February 1, 2020 to February 28, 2021.

Copies of the materials filed on April 23, 2021, including the Trustee’s Third Report, are available below.

On October 7, 2020, FAAN Mortgage Administrators Inc., in its capacity as Trustee of Building & Development Mortgages Canada Inc. (“BDMC Trustee”), served materials in connection with its motion returnable October 15, 2020, in support of the BDMC Trustee’s request for an order (“Tax Opinions Order”) that:

Authorizes the Trustee to disseminate copies of the Tax Opinions, in accordance with the procedure set out in the proposed Tax Opinions Order, for use by an Investor in an ongoing or potential action or legal proceeding relating to a Fortress related real estate project to which the Tax Opinion(s) relate(s).

The Tax Opinions Order contains, among other things, a paragraph that orders that the Tax Opinions Order and the dissemination of copies of the Tax Opinions applies, with any necessary modifications, in the Sorrenti proceeding (Court File No: CV-19-628258-00CL).

Copies of the motion record filed on October 7, 2020, including the BDMC Trustee’s Twenty-Second Report, are available on the website for the BDMC proceedings at the following link:

On October 7, 2020, FAAN Mortgage Administrators Inc., in its capacity as Trustee of Building & Development Mortgages Canada Inc. (“BDMC Trustee”), served materials in connection with its motion returnable October 15, 2020, in support of the BDMC Trustee’s request for an order (“Tax Opinions Order”) that:

Authorizes the Trustee to disseminate copies of the Tax Opinions, in accordance with the procedure set out in the proposed Tax Opinions Order, for use by an Investor in an ongoing or potential action or legal proceeding relating to a Fortress related real estate project to which the Tax Opinion(s) relate(s).

The Tax Opinions Order contains, among other things, a paragraph that orders that the Tax Opinions Order and the dissemination of copies of the Tax Opinions applies, with any necessary modifications, in the Sorrenti proceeding (Court File No: CV-19-628258-00CL).

Copies of the motion record filed on October 7, 2020, including the BDMC Trustee’s Twenty-Second Report, are available on the website for the BDMC proceedings at the following link:

On May 5, 2020, the Court granted an order (“Omnibus Order”):

approving certain amendments to the interim stabilization measures of the Appointment Order to:

authorize the Trustee to distribute 50% of the Realized Property to the applicable Investors, including, without limitation, authorizing and directing the Trustee to effect a distribution equal to 50% of the Bayview, Gotham, and HVS Realized Property; and

authorize the Trustee to use the retained Realized Property as an administrative holdback to fund the cost of these proceedings, including to pay operating and professional costs associated with the SML Administration Business; and

approving the First Report of the Trustee dated January 22, 2020, the Second Report dated March 6, 2020, the Supplement to the Second Report dated April 13, 2020, as well as the Trustee’s activities, the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from the date of the Appointment Order to January 31, 2020.

The Court also granted a further order (the “LRO Direction Order”) which directs the applicable Land Registry Office to, upon the filing by the Trustee of one or more certificate(s) with the Court, expunge and delete the Appointment Order from title to the property(ies) identified in such certificate(s).

Copies of the Omnibus Order, the LRO Direction Order, and the related endorsement are provided below.

On April 13, 2020, the Trustee served a Supplement to the Second Report of the Trustee dated March 6, 2020 in respect of a Claim to Certain Proceeds from the Harmony Village Project by Fortress Real Developments Inc.

The Trustee’s Supplemental report is available below.

On March 6, 2020, the Trustee served materials in connection with its motion returnable March 17, 2020, which provides, among other things, a recommendation that the Court grant an order:

approving certain amendments to the interim stabilization measures of the Appointment Order to:

authorize the Trustee to distribute 50% of the Realized Property to the applicable Investors, including, without limitation, authorizing and directing the Trustee to effect a distribution:

to Bayview Individual Investors in an amount equal to 50% of the Bayview Realized Property,

to Gotham Investors in an amount equal to 50% of the Gotham Realized Property; and

to the HVS Investors in an amount equal to 50% of the HVS Realized Property; and

authorize the Trustee to use the retained Realized Property as an administrative holdback to fund the cost of these proceedings, including to pay operating and professional costs associated with the SML Administration Business; and

approving the First Report of the Trustee dated January 22, 2020 and the Second Report dated March 6, 2020, as well as the Trustee’s activities described therein, and approving the Trustee’s fees and disbursements, including the fees and disbursements of its counsel, for the period from the date of the Appointment Order to January 31, 2020; and

directing the applicable Land Registry Office to, upon the filing by the Trustee of one or more certificate(s) with the Court, expunge and delete the Appointment Order from title to the property(ies) identified in such certificate(s).

Copies of the materials filed on March 6, 2020, including the Trustee’s Second Report, are available below.

On January 30, 2020, the Court granted an order approving a settlement offer made by the Gotham borrower in respect of the Gotham loan advanced by Sorrenti.

A copy of the Gotham Settlement Approval Order and the related endorsement is provided below.

On January 22, 2020, the Trustee served materials in connection with its motion returnable January 30, 2020, which provides, among other things, a recommendation that the Court grant an order approving a settlement offer made by the Gotham borrower in respect of the Gotham loan advanced by Sorrenti.

Copies of the materials filed on January 22, 2020, including the Trustee’s First Report, are available below.

A link to questions frequently posed to the Trustee regarding its mandate and Sorrenti:

On September 30, 2019, pursuant to an order of the Ontario Superior Court of Justice (Commercial List) (the “Appointment Order”), FAAN Mortgage Administrators Inc. (“FAAN Mortgage”) was appointed as trustee (“Trustee”) over all of the assets, undertakings and properties of Derek Sorrenti or Sorrenti Law Professional Corporation (collectively, “Sorrenti”) that relate to Sorrenti’s administration of syndicated mortgage loans (“SMLs”). FAAN’s appointment was precipitated by an application made by the Law Society of Ontario under Section 49.47 of the Law Society Act, R.S.O. 1990. c. L.8, and section 101 of the Courts of Justice Act, as amended. The materials related to the Trustee’s appointment can be accessed at the following links: