Fraud Lawsuit – Five Condos

Condo owners at Five Condos in Toronto filed an $800,000 lawsuit against former board members, claiming that they diverted funds from the corporation's operating budget for their personal benefit. The board members allegedly claimed to be owners in the building and forged ballots during the 2016 election. One of the contracts with a business controlled by the board members forced condo owners to pay three times the market rate for hydro. The lawsuit also alleges that residents were billed double the cost for management and security services with half the money being kept by these directors, and that the corporation was billed for services never provided. An audit revealed $600,000 in unpaid bills and a negative bank balance. The special assessment was paid to clear the bills. Proper election practices could have prevented these individuals from obtaining control of the board.