Some investors in North York condo scam may not get their money back

Millions of dollars in deposits will be returned to buyers of North York condo project that never got built — but other investors may not be so lucky.

Sally Huang sunk $80,000 into a commercial space as part of the Centrium developments at 5220 and 5254 Yonge St. north of Highway 401 in 2010, and her cheques were made out to well-known Toronto law firm Brattys LLP.

After Centrium’s developer, Centrust Development Group, apparently disappeared with the cash, a judge ruled that $9 million held in that law firm’s trust account was to be returned to buyers. But that’s when Huang found out she wouldn’t be receiving a cent.

That’s because in 2011, her money was transferred to real estate lawyer Meerai Cho, who declared bankruptcy this summer and is now facing multiple fraud charges as part of the doomed Centrust development deal.

“We are new immigrants to Canada, it’s not easy to make money and also to save money for something…for the next generation,” Huang said.

Cho was arrested on Aug. 26 and charged with 25 counts of fraud over $5,000, 25 counts of possession of stolen goods and 25 counts of breach of trust.

It’s alleged she prematurely sent the money to Centrium condo developer Joseph Lee of Centrust Development Group. Lee is believed to have skipped town and is possibly in South Korea.

Police are also looking into whether investors in the Bratty LLP trust knew their money was being transferred to Cho.

Brattys LLP did not respond to multiple requests for comment from CityNews.

Meanwhile, Cho remains the only suspect charged in the case. However that could change in the coming weeks as the massive paper trail leads police to more bank accounts.

CityNews was the only media that accompanied police last week when they raided Centrust’s former offices, where thousands of documents, including contracts, were seized as part of their investigation.

The raid followed a CityNews exclusive on Aug. 22 about Centrust, which sold pre-construction units in 2010 to at least 141 people for two towers. Individual deposits ranged anywhere from $40,000 to $700,000 for residential and commercial units.

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