A controversial real estate investor responsible for buying up numerous properties in Sault Ste. Marie is the target of a civil suit that’s currently playing out in a local courtroom.
Both CPM Properties co-director Nels Moxness and 14085175 Canada Inc. are being sued by Olympia Trust for nearly $200,000 after allegedly failing to pay a mortgage on 216 Gloucester St. last year, according to a statement of claim filed in Ontario Superior Court in June 2024.
The trust company, which filed the civil suit as the trustee for a retirement savings plan holder, is also seeking possession of the property, interest and court costs.
The allegations against Moxness and the numbered company based in Hamilton, Ont. have not been tested in court and a statement of defence has yet to be filed. Neither Moxness nor his legal counsel responded to interview requests from SooToday made last month.
As extensively reported by SooToday, Moxness — who is co-director of CPM Properties alongside his son, Mathew Moxness — used more than two dozen numbered companies to buy up at least 130 properties in Sault Ste. Marie, many of them in the city’s downtown core, as housing prices plunged during the COVID-19 pandemic.
Court documents reveal that Olympia Trust was initially offered a “private mortgage opportunity” for the Gloucester St. property by The Windrose Group, a Hamilton-based mortgage brokerage, in June 2023.
The Windrose Group may be familiar to some readers: It also provided the insolvent, out-of-town landlords behind SID Developments with a number of promissory notes — a way of getting loans without the aid of a financial institution — from lenders sourced by Windrose and its principal broker, Claire Drage, prior to entering into receivership last year.
The Lion’s Share Group, another mortgage broker in southern Ontario founded by Drage, also entered into receivership last year after issuing hundreds of promissory notes to several real estate investors, including Moxness.
Court documents related to the Lion’s Share receivership proceedings have revealed that Moxness has acted as guarantor for more than 600 promissory notes in the Sault alone.
Listed as sole director of 14085175 Canada Inc., Moxness also acted as the guarantor for a $160,000 loan used to purchase the Gloucester St. property, court documents show.
Requests for payment have been made on “several occasions,” according to affidavits filed in court, but Moxness has allegedly failed to pay the amounts owing on the mortgage.
It’s far from the first time Moxness has been taken to court in Sault Ste. Marie, either.
All told, there have been 27 civil proceedings launched against him and several of his numbered companies in Ontario Superior Court since 2022, the majority of them concerning allegations of unpaid loans that were used to acquire properties locally.
The allegations are worlds apart from a November 2023 news release issued by Moxness himself, describing him as a “leading real estate investor” spearheading “successful ventures” in the Sault and northern Ontario.
“As a seasoned investor with a keen eye for style and creativity, Nels possesses extensive knowledge of the property market, emerging trends, and growth opportunities. His meticulous attention to detail allows him to discern hidden potential in neglected properties,” said the news release.
“Over the years, Nels has successfully undertaken ambitious real estate development projects, revitalizing aging and distressed properties in key Canadian markets. Through his efforts, he transforms these spaces into contemporary, functional homes for both renters and aspiring homeowners, providing them with perfect places to create cherished memories.
“Nels envisions replicating this successful model nationwide, offering clients a diverse range of flexible housing options.”
But it appears as though 216 Gloucester St. — like many properties in the Sault linked to numbered companies directed by Moxness — has been left to sit derelict and vacant.
The boarded-up downtown property currently has an order to comply that was issued by the City of Sault Ste. Marie in September 2024, compelling the property owner to secure the dwelling — or have the fees incurred by the municipality to remedy the bylaw violation added to the tax roll for the property.
Motions for the court matter involving Moxness and 14085175 Canada Inc. are scheduled to be heard in Ontario Superior Court in mid-April.