A controversial real estate investor from Burlington, Ont. has lost half a dozen lawsuits — and as a result, they also lost possession of properties in Sault Ste. Marie — following recent judgments in Ontario Superior Court.
CPM Properties co-director Nels Moxness is named as a defendant in the civil suits, all of which were launched by lenders over unpaid mortgages on seven properties. Seven numbered companies directed by Moxness were also named as defendants in the proceedings.
Court documents reveal that both Moxness and numbered companies directed by the southern Ontario businessman have been ordered to pay a staggering $1.42 million, plus interest, after a series of default judgments were handed down at the Sault Ste. Marie Courthouse over the past two months.
In general terms, a plaintiff can request a civil suit to be noted in default if the defendant fails to file a statement of defence within 20 days of the statement of claim being filed, paving the way for a default judgment to be awarded to the plaintiff.
The following is a rundown of the recent default judgments:
- Olympia Trust and Richard Uszynski awarded $148,722 and possession of 346 Bloor St. W. on Dec. 11, 2024 after launching a claim against Moxness and 12864843 Canada Inc.
- Olympia Trust awarded $147,773 and possession of 178 Spring St. on Jan. 3 after launching a claim against Moxness and 13380696 Canada Inc.
- Olympia Trust and Hariharan Navakumar awarded $391,860 and possession of 148 Pim St. on Jan. 3 after launching a claim against Moxness and 13964973 Canada Inc.
- Windrose Capital awarded $196,591 and possession of 344 Bloor St. W. on Jan. 6 after launching a claim against Moxness and 13380696 Canada Inc.
- Khanh and Zhen Truong awarded $212,008 and possession of 264 Alexandra St. and 165 Albert St. W. on Jan. 10 after filing a claim against Moxness, 13220494 Canada Inc. and 13212386 Canada Inc.
- Olympia Trust awarded $326,479 and possession of 559 Morin St. on Jan. 10 after filing a claim against Moxness and 14175883 Canada Inc.
There have been nearly 30 court claims in all launched against Moxness in Sault Ste. Marie since 2022, the majority of them concerning allegations of unpaid loans that were used to acquire properties locally. The bulk of those allegations have yet to be proven in court.
As extensively reported by SooToday, 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 plummeted during the COVID-19 pandemic.
The Lion’s Share Group, a mortgage broker in southern Ontario founded by Claire Drage, entered receivership in March after issuing hundreds of promissory notes — a way of getting loans without the aid of a financial institution — to several real estate investors, Moxness included.
Court documents have revealed that Moxness helped establish his real estate empire in Sault Ste. Marie by acting as the guarantor for more than 600 promissory notes worth hundreds of thousands of dollars.
A number of the rental properties that were bought by numbered companies operated by Moxness are currently sitting vacant and boarded up. This past October, city council unanimously voted in favour of slapping owners of vacant, neglected properties with a four-per-cent tax beginning this year.
Fellow CPM Properties co-director Mathew Moxness — who is Nels’ son — was scolded by members of city council in March 2024 for the derelict, boarded-up properties while applying for a zoning application allowing for a new, five-storey apartment building at the former Red Cross property on Allard Street.