The Trump Tower may be in trouble with the Ontario Securities Commission

Already embroiled in a legal skirmish with buyers hoping to get their deposits back, Talon International, the developer of Toronto’s Trump Tower, has also caught the unwanted attention of the Ontario Securities Commission. In 2004, the commission excused Talon from some of the more onerous conditions (such as filing a prospectus) normally imposed on companies taking investment offerings public. The exemption came with instructions: Talon was to market the condo-hotel units as spaces to stay in or visit, rather than lucrative investment opportunities, and it couldn’t provide buyers with revenue or cost projections. The now more than 50 investors seeking to renege on their contracts have come forward to claim Talon did exactly that, flashing spreadsheets that touted the revenue-generating potential of the units—projections that haven’t been realized, since the hotel’s occupancy is hovering below 50 per cent. The commission says it’s investigating, leaving the door open for regulatory action. Whoever thought the tower’s falling glass days would be the easy ones? [Toronto Star]