The Globe and Mail on the Investigation Order, and the Record
In February 2024 The Globe and Mail reported that the court had given the Monitor of the SID companies the power to investigate how the money lent to them had been used. This page sets the article's statements about Robert (Robby) Clark and the companies beside the public record.
The short answer
The companies supported the investigation, and its claims were never tested. The article reports the companies' counsel telling the court they were "pleased to see this investigation taking place". The same article states: "The claims made in the legal filings haven't been tested in court."
What the article says, and what the record shows
| What the article says | What the record shows |
|---|---|
| A judge authorized an investigation into the use of $144 million in borrowed money. | The order gave the Monitor "investigatory powers regarding the use of lender advances prior to these proceedings". The court recorded that the powers were "requested by the Secured Lenders and supported by all other parties". $144 million was the companies' debt at filing. The Monitor's own pre-filing report put the estimated appraised value of the homes at about $173 million.Endorsement of Justice Kimmel (Feb 15, 2024), para 10; Pre-Filing Report of the Proposed Monitor (Jan 2024), s.2.0 paras 3 to 4 |
| The companies' lawyer said his clients were looking forward to the investigation and did not expect it to turn anything up. | The companies' sworn evidence is that they consented "in a good-faith effort to address the concerns raised by the Objecting Lenders with the impression that their value-accretive renovation efforts could proceed as intended under the Monitor's oversight". Under the same order, every payment by the companies required "the prior written consent of the Monitor".Motion Record of the Applicants (Jun 20, 2024), including the affidavit of Robert Clark, Clark affidavit paras 18(d)(i) and 24(a); Endorsement of Justice Kimmel (Feb 15, 2024), para 10 |
| An investigative mandate is unusual in a CCAA proceeding. | The Monitor and its counsel billed $1.58 million before tax in April and May 2024, the two months before the report. The Monitor filed its report on June 11, 2024, and has recorded that a draft "was not provided to any party (including the Applicants) prior to it being filed with the Court".Sixth Report of the Monitor (Jul 24, 2024), s.7.0 para 1; Supplement to the Fifth Report (Jun 23, 2024), s.2.0 para 1 |
| The article says the claims made in the legal filings had not been tested in court. | They never were. On June 24, 2024 the court held that the companies were entitled to cross-examine on the Monitor's report. The matter was resolved on consent the next day, and no approval of the report was sought.Endorsement of Justice Osborne (Jun 24, 2024), para 13; Endorsement of Justice Osborne (Jun 25, 2024), paras 2 and 8 |
| Mr. Clark and the directors appear in social media videos with private jets and yachts. | The footage reported by CBC News that month is dated 2020, 2021 and March 2022 by CBC's own article. In May 2022 the companies closed the sale of 223 homes for $75,850,443. The CBC article, and the dates.CBC News, Feb 9, 2024; Fourth Report of the Monitor, redacted (Jun 11, 2024), s.4.5 para 1 |
| Most of the loans were arranged by a mortgage broker, and the regulator was reviewing complaints about her. | In December 2025 the broker admitted to fraud in a settlement with the Ontario Securities Commission. The Capital Markets Tribunal found that "Drage committed a large-scale fraud". In March 2026 the Financial Services Regulatory Authority of Ontario imposed $600,000 in penalties.OSC Settlement Agreement, Claire Drage et al. (Dec 16, 2025), para 52; Capital Markets Tribunal reasons, 2026 ONCMT 1 (Jan 16, 2026), para 8; FSRA announcement: $600,000 penalties (Mar 2026) |
What the Monitor said in the months that followed
Monitor's reports
In its First, Second and Third Reports, between January and April 2024, the Monitor said the companies were "acting in good faith and with due diligence".
The June 2024 report · The Globe and Mail feature of July 2024 · Cost of the CCAA · Questions and answers
What cuts the other way
- The Monitor's report of June 11, 2024 says it appears the principals "diverted, misused or misappropriated" funds. Fourth Report of the Monitor, redacted (Jun 11, 2024), s.2.4 para 6
- The Monitor's supplement of June 23, 2024 says the companies' response did "not change the principal conclusions" of the report. Supplement to the Fifth Report (Jun 23, 2024), s.2.0 para 2
- The court referred to "the very serious nature of the allegations". Endorsement of Justice Osborne (Jun 24, 2024), para 14