A Scheme To Bamboozle Control Of A Toronto Development May Cost Cash Strapped La Kosher Nostra Romsen $185 Million

Here we go again. Another La Kosher Nostra Romspen scheme to wrestle control of a major commercial development from a borrower has blown up in Romspen’s face.

This time it’s down the street from La Kosher Nostra’s headquarters in Toronto. Yes, the same headquarters that was raided by law enforcement in October, 2024. Seriously, when will the Romspen Kosher Nostra realize their “Loan-To-Own” scheme has become a self-inflicted would?

Romspen’s latest boneheaded move involves a high rise mixed-use project in Toronto. An Ontario court has placed the nearly completed project under receivership.

The project was being undertaken by Ontario-based G Group Development at 5220-5250 Yonge Street.

G Group secured financing from Romspen in 2013. The loan agreement went through several amendments over the years. This included a $125 million acquisition facility and a letter of credit facility. In addition, it also included a $250 million construction facility.

Court documents did not outline the events that lead up to the default. However, all you have to do is look at the Romspen Kosher Nostra’s pattern of “Loan-To-Own” schemes. If you know their history, it’s pretty obvious how it got to this point.

Romspen says it issued a demand for payment on Oct. 1, 2025. As a result, G Group consented to a receivership the next day. Romspen says G Group owes them $185,284,882.44 as of September 30th. The $185,284,882.44 includes principal and interest on all three facilities as well as various fees. In aaddition, it also includes unpaid daily interest of $68,411.94.

Agreements with the City of Toronto

G Group is the second developer to default on a mortgage tied to 5220-5250 Yonge Street. A City of Toronto report from February 2017 states a previous developer was planning to develop the property. They received approval from Toronto City Council in July 2012. However, they defaulted on that mortgage in September 2012.

The owners put the development up for sale in June 2013. G Group acquired the development in October 2013 for $28,430,000.

Court documents state that G Group is required to convey a “social facility unit” in the building to the city. The letters of credit included one for $1.2 million and one for $1.3 million. These letters were used to secure this obligation.

Group G and the city amended theior agreement in November 2024. Apparently, Group G ran into construction delays. As a result they could not deliver the social facility space before the condos were ready to be sold. The city agreed to the amendment granting G Group provide an additional $1 million of cash security.

Romspen claims that G Group was also involved in litigation with Talisker Realty Corporation. The case was settled with an agreement that G Group would transfer 26 residential units, 27 parking spaces to Talisker. In addition, G Group would transfer 27 locker units to Talisker.

Romspen Is Now Begs An Ontario Court For A Receiver

The desperate Kosher Nostra at Romspen claims their is urgent need for a receiver. they claim the project is “at a standstill” and that 14 construction liens have been registered against the project. Court documents indicate those liens total just over $8.5 million.

Romspen’s lawyers state:

“In the face of the construction liens, no lender will advance funds to complete the Project without the appointment of a receiver, manager and construction lien trustee with the power to borrow funds in priority to the Debtor’s encumbrancers and sell the Inventory. Moreover, unless the Project is completed, a number of the Debtor’s pending sale transactions will be lost. It is, therefore, urgent that a receiver, manager and construction lien trustee be appointed immediately.”

The Ellie Condos section of the development appears to have been largely completed. Romspen states the condominium declaration for the residential component was registered in February 2025. They also state that the liens were registered against the remaining inventory owned by the developer. The liens include 12 condos and 53 parking and/or locker units.

Units that have been conveyed are not subject of the liens or receivership.

Court documents filed by Romspen said a progress report issued on Sept. 30, 2025 by the project’s independent cost consultant concluded the cost to complete the project was $4,183,978 in hard costs and $196,664 in soft costs. The “pending sale transactions” are referring to 11 commercial units, for which $12,346,201.23 in deposits has been collected.

Romspen says the social facility space also must be completed to avoid the city drawing on the letters of credit and cash securities.

The Ontario Superior Court granted the receivership order on November 3. The court also appointed Fuller Landau as the receiver.