The man behind several numbered companies notorious for snatching up dozens of properties in Sault Ste. Marie is currently being sued for more than a quarter of a million dollars after one of his companies allegedly defaulted on a mortgage attached to a local property.
A statement of claim obtained by SooToday reveals that 12972573 Canada Inc. and its director, Nels Moxness — who is also a director of Crescendo Property Management, also known as CPM Properties — are being sued for nearly $270,000, plus interest and court costs, after the Hamilton, Ont. company allegedly defaulted on a mortgage for 139 Church Street this past June.
The plaintiff, listed in court documents as Bob Dieleman Investments Corporation, is also seeking possession of the property, which is located on the corner of Church Street and Herrick Street.
The allegations against Moxness and his numbered company have not been tested in court and a statement of defence has yet to be filed. Moxness has so far not responded to an interview request from SooToday.
As reported previously by SooToday, Moxness is also the director of 24 other numbered companies that owns dozens of houses in Sault Ste. Marie. In all, his companies have purchased 129 properties, the majority of them situated in the city’s downtown core.
Moxness is the former president and chief executive officer of Velux Canada, a supplier of roof windows and skylights based in Oakville, Ont., and used to be the chairman of the Danish Canadian Chamber of Commerce.
According to his LinkedIn profile, Moxness has departed from both positions in the time since SooToday reported on his real estate dealings in the Sault last year.
He is also one of two directors of Crescendo Property Management (CPM), a Hamilton-based company that manages a number of residential and commercial properties in Niagara, Sudbury, Hamilton, and Sault Ste. Marie.
The other director of CPM is Mathew Moxness, who issued a press release in 2021 announcing his company’s expansion into Northern Ontario, including Sault Ste. Marie, with plans to target “aging and underperforming properties” and “revitalize them.”
"We think it's really important to preserve the unique value of aging supply while also providing renters with contemporary suites," Mathew said in the press release. "We plan to follow suit in underperforming markets throughout the country."
As SooToday previously revealed in a series of articles last year, a vast number of homes in Sault Ste. Marie has been scooped up by southern Ontario investors. While some properties are being rented to tenants, others have remained vacant and boarded up, triggering numerous complaints to the city’s bylaw department.