April 1, 2023

The Beach House at Saratoga reaches end of life after August 1, 2023. This is 120 days after the failed completion date of March 31, 2023. The insider group will rescind to rid themselves of binding contracts they never intended to complete. Crooks have already retrieved their deposits through false REDMA 18(4) certification. Everybody else is screwed. First mortgage holder is VERY screwed and absolutely must sue everybody.

8. There is a second mortgage of $4.9m from insurance company Intact Insurance. The plaintiff entered into a deposit protection insurance agreement May 22, 2022 to access purchaser deposits held in trust. To secure this insurance the plaintiff was required to certify that there was no buyer right of rescission. The plaintiff was further required to certify how many units were sold. The agreement expired April 1, 2023. 9.The plaintiff is governed by the Real Estate Development Marketing Act. https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/04041_01 A non-compliant act is described in 24 D (ii) a false or misleading statement in a certification under section 18 [handling deposits]. The plaintiff may face 2 years in jail and a $1.5m fine for a first offense. 10. The defendant believes the plaintiff has made false statements and is being investigated for acts of non-compliance of REDMA. As developer the plaintiff accessed purchaser trust deposit funds of $4.9m that required a certification of no right of recession. Since there is a right of recession, one admitted to and always in existence, that certification must be fraudulent. The plaintiff appears to have brazenly committed fraud. 11. As at April 1, 2023, 9022 Clarkson Ave has an $11.5m first mortgage, a $4.9m second mortgage, and $3.5m in other borrowings. Added to the $6.4m of funds raised from the public, $26.5m of others money has been raised by this plaintiff. By his own admission the all-in cost of Beach House at Saratoga is $20.5m. 12. This plaintiff and his group have a right of recession. It is unrealistic to think that any of that group would fail to rescind. Legitimate buyers, if they knew the facts, wouldn’t hesitate to rescind either. The stage is set for a foreclosure from the first mortgage position as a majority of sold out condos held as security are revealed to the lender to be unsold. Worse, they appear unsellable. If deposits have been looted the lender is in dire trouble. 13. A MLS listing appeared for unit A24 on April 18, 2023 for $925k. MLS® Number 929096. This listing was the first to appear after CB Oceanside banned listings at 9022 Clarkson Ave weeks previously. The new selling agent, Corey Zaal, has been proven to be working for Ms. Kirsten Marten, who is trying to sell her condo. 14. A MLS listing appeared for unit A25 on April 24, 2023 for $949,900. MLS® Number 929596. Selling agent is Corey Zaal. 15. A MLS listing appeared for unit A12 on April 26, 2023 for $924,900. MLS® Number 929867. Selling agent is Viet Do. Unit A12 is the same listed by Kirsten Marten. 16. A MLS listing appeared for unit B14 on May 4, 2023 for $1,599,900. MLS® Number: 930216. Selling agent is Corey Zaal. Unit B14 is the same listed by Kirsten Marten. 17. Lack of condo sales is likely related to high price, detrimental zoning and rural location. TC-1 zoning allows 6 months occupancy per year. Condos are greatly overpriced for that zoning. Larger detached homes with land can be had for less in the area. A rental scheme was imagined to help sell sold out condos. It envisions a minimum charge, plus taxes and $250 ‘cleaning fee’, of $4,000 per week.

1. The defendant recognizes the plaintiff ‘exempt dealer’ as a securities reprobate. The plaintiff’s project, Beach House at Saratoga, in which $6.4m of public investor money has vanished, reached a milestone on April 1, 2023. Purchasers may walk away without penalty and with interest on their deposits. This event (a right of rescission) is triggered by lack of completion by March 31, 2023. Construction ceased at 9022 Clarkson Ave for months. 2. The plaintiff claimed his project was sold out in August 2021. The plaintiff continued this lie after being busted trying to sell 3 sold out units through agent Viet Do at StoneHaus Realty. MLS® 881336 unit #28 @ $759k, MLS® 881337 unit #23 @ $869k, and MLS® 881398 unit #6, @ $859k. Agent Do confirmed his client was the developer. None sold.3. Agent Kirstin Marten of CB Oceanside in Victoria was the plaintiff’s outlet for his sold out condos. 3 of her MLS listings for units 12, 14, and 15, were removed on or about March 25th, 2023. All claimed the project was sold out, as has every MLS listing from CB Oceanside. Kirsten Marten denied, under oath, her client was the plaintiff. Kirsten Marten, CB Oceanside. 4. The plaintiff’s claim of being sold out is fraudulent and always was. Upwards of 15 units (half) were ‘sold’ to a non-arms length insider group with their initial requirement being a 5% deposit, fully secured. That deposit, plus interest, can be retrieved without penalty after April 1 due to failure to complete. At $37k average, $500k was put into a piggy bank. The insider group now controlled $15m of sold out condos and had a year and a half to flip them at higher prices with no risk. 5. The insider group tried to flip sold out condos on MLS and they have failed, selling none. A pair of sales occurred Feb 14. Unit C4 was listed for over 560 days. It sold for $799,900 by an agent at CB Oceanside. Unit A6 is the one attempted to be sold by Viet Do and the agent was Kirsten Marten of CB Oceanside. Seller is the plaintiff. It sold for $899,900. Both listings claimed the project was sold out. 6. The plaintiff raised $11.5m in first mortgage construction financing on March 15, 2022 from Terrapin Mortgage Investment Corp. while holding out to the lender that the project was sold out. Deposit requirements to purchasers rose to 20% when this financing was obtained. The insider purchaser group was required to provide $2.5m. 7. After April 1 the plaintiff is required to repay $3.5m of short term borrowings from Dundarave Mortgage Investment Corporation

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Real Estate Development Marketing Act "18(3)A trustee under subsection (1) must release the deposit to the developer if the developer certifies in writing that (a)the purchaser who paid the deposit has no right to rescission under section 21 [rights of rescission]" Units attempted to be sold on MLS are C4, A6, A9, B14, B15, A12, C28, and A23. The plaintiff bought unit C27. Unit B18 and B16 are currently being offered on booking.com.

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