Private jets, yachts and parties: Ontario landlords flaunted lavish lifestyle as business began to crumble
He's shown getting into sports cars and relaxing in private jets, smiling next to famous rappers like Kanye West and Rick Ross, and taking in the view from a California mansion. By early 2024, the corporations had only $100,000 in the bank and owed $144 million to lenders, faced dozens of lawsuits from creditors and received court-ordered bankruptcy protection.3 landlords among largest real estate holders in Ontario owe $144M, under bankruptcy protection: documents
Clark declared bankruptcy in 2009 and then started a meal-kit business, which also failed, he said. He then turned to real estate investing, but his credit score "was a joke," so he had to get "other people to sign on the dotted line" when purchasing his first properties. She provided their corporations with secured mortgage loans, which give lenders collateral if borrowers don't meet their debt obligations, according to the court documents. She also provided them with unsecured promissory notes — loans not tied to any collateral.
Toronto mortgage broker Ron Butler, who is not connected with the case, said the family ties are a conflict of interest that Drage would be required to disclose to investors.