Toronto Real Estate Developer Accused Of Fraud Now Appointed To Ontario Environment Ministry Committee
A director of the Markham-based real estate developer Sunrise Homes who’s currently facing allegations of unlawful misappropriation of millions of dollars has just been appointed to a Program Advisory Committee of the Ministry of the Environment, Conservation and Parks in Ontario.
Sajjad Hussain of Toronto, alongside fellow Sunrise Homes director Muzammil Kodwavi, has recently been accused of diverting substantial sums of money from various construction projects for their personal use, in violation of legal and fiduciary obligations.
However, it was recently found out in a published government appointment in September, Hussain has been appointed “a part-time member of the Species at Risk Program Advisory Committee at the pleasure of the Lieutenant Governor in Council for a period not exceeding three years from the date this Order in Council is made.”
Hussain, according to his LinkedIn profile, is the CEO of Sunrise Homes since January 2012.
Prior to this, a legal document reveals that the Ontario Superior Court of Justice (Commercial List) issued a Receivership Order on June 9, 2021, appointing a Receiver for all assets, undertakings, and properties of the company related to its business activities, including valuable real estate holdings in Markham, Ontario. This move came after investigative efforts by the Receiver, as mandated by the court order.
The Receiver’s investigations have raised numerous red flags, including the revelation that millions of dollars were unlawfully siphoned from the company and funneled to the two directors, Kodwavi and Hussain, as well as certain affiliated parties. These actions are alleged to be in violation of the company’s commitments to its secured lenders and the directors’ fiduciary duties and other legal obligations owed to Sunrise Homes.
According to recent reports, Kodwavi, during cross-examination, admitted to the diversion of funds from one construction project to cover costs at others, repeatedly. This practice, he claimed, was common within the construction industry. However, questions remain about the legality and consequences of such financial maneuvers, especially if the projects take a downturn.
It is unclear whether the Ontario government knew of the alleged misappropriation of funds by Hussain when it made the appointment, given that the order was approved by the end of August.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
