This is the specific page for the CBI PIC Class Action. Check back to this page frequently for updates.

UPDATE: January 5th, 2016

We are now in the process of concluding the class action settlement in this matter, which will involve the return of participation fees to those investors who initially contributed to the class action.

As we have noted previously, the likelihood for recovery for both the CBI PIC and CBI Venu / Keystone projects is low due to the existence of mortgages and encumbrances which exceed the value of the investment properties. We are evaluating options for investors to move forward to obtain some form of recovery. Please keep checking our website and monitor your e-mail addresses for updates.

UPDATE: September 28th, 2015


We have received multiple e-mails and phone calls from investors with respect to the settlement. Please note that due to the volume of calls and e-mails we receive, we cannot answer individual questions about the settlement. We have reviewed the questions that investors have sent us, and we have found some common themes. Please visit the “CBI FAQ” page under CBI Group or click below:

Frequently Asked Questions

UPDATE: September 10th, 2015


This matter has now been resolved in accordance with the settlement agreement which received unanimous and overwhelming approval. This settlement ends the litigation for investors in the Property Income Corp matter. The funds received as settlement shall be put towards the cost of funding the litigation. Investors who contributed funds at the outset shall be made whole and have their contribution returned to them.

As opposed to the CBI Lakehouse project, the CBI PIC investment did not involve the development of any lands itself, and was always intended to be an additional loan on multiple other projects created by the Cadmans in the CBI Group. In this instance, litigation is fundamentally not the way that PIC investors can see any return. The various projects that PIC investors are involved in pit the PIC investors with the investors in other projects, creating a dispute over priority to any return on investment.

The sworn evidence received in this matter is there is no equity in any project in which PIC mortgages are held.  What this means for investors is that litigation is not the way that investors will ever see any return.

The only way for CBI PIC investors to make a return on their investment is to bring in a competent developer with new financing, so that these projects can be developed and value can be created for investors. We will be working with CBI PIC investors following the resolution of this claim to try and find a competent developer who can come in and finish the projects in which investors are placed.  This will help the investor group in that specific project as well as the PIC investors. Our focus is to find a way to create value for investors without creating priority disputes between investors.  And this will be in the face of situations where current debts exceed asset values in all of the projects. So we do not want to create unrealistic expectations.  As we said previously, the sworn evidence received is there is no equity in any of the PIC mortgages.  For new development options to be pursued, it will take a lot of work with creditors and for investors to work together to find solutions that cannot be constructed through legal process.

For the CBI PIC investors, we can clarify that we have litigation ongoing with the Keystone Business Park. The CBI PIC investors’ interest is reflected on a mortgage on title, which is behind in priority to the actual investors in the CBI Keystone Business Park project itself.  As it currently stands, there is not sufficient value in the asset that will result in payout to PIC investors after repayment to the Keystone Business Park investors on their mortgage.  That is consistent with the sworn evidence.

Once the litigation is resolved, we will be in contact with investors to discuss some potential go forward strategies with competent developers to find a way to create value for investors.

We thank investors for their cooperation and patience in this matter. Invictus LLP is working diligently to help investors to try and obtain some return on their investment in this property.

Click HERE to review the Notice of Settlement Approval, Opt – Out Form, and Claim Form, or visit the Forms page to the left. We ask that investors fill out the claim form to allow us to identify your investment, which will enable us to contact you to hold an investor meeting in the near future to discuss go the best way to move forward.

UPDATE: August 7th, 2015:

As we are getting closer to the Settlement Approval Hearing for the CBI Property Income Corp and CBI Venu / Keystone projects on September 9th, we have heard from a number of investors who received the Notice of Settlement Approval Hearing and they have expressed some confusion about what to do and what is going on here. Please note that we cannot respond to each individual investor as it takes a significant amount of time. We have been updating our website frequently as more information becomes available.

We would like to provide the following clarification to investors, as there seems to be some confusion about what is happening:

  1. As stated in our earlier updates, this is a Notice of Settlement Approval Hearing There is nothing for investors to do at this time other than to be aware that the hearing is coming up and we propose to have our settlement approved by the Court. If you wish to object to the proposed settlement, you can provide us your written comments to us by no later than August 9th, 2015 , and we will inform the Court of these objections on September 9th.
  2. Through the course of questioning, in the PIC and Keystone/Venu actions, the Defendants admitted under oath that there is no equity in either project.  Title to the Keystone/Venu property demonstrates that the Venu investors were subordinated to financing from PIC provided at a later time.  The intent here was not to have investor classes competing with one another for priority and in any event, there is no equity in the Venu project.  The litigation inhibits the ability of the investor groups to try to work together to formulate a business solution to try to take development further, in hopes of creating value for investors here.  Currently there is nothing for investors and no assets to collect against.  So this is effectively the only solution.
  3. If the settlement is approved in Court in September, a second notice will go out to investors, called a Notice of Settlement Approval. If you wish to Opt – Out of the settlement ,this is your chance to do so. If you do Opt-Out, you are then essentially left with the option of suing yourself.  That is not a viable or cost effective option, in our view.  However, if you remain within, the intent is to get the PIC and Keystone/Venu groups to work together to find someone to finish development of Venu.  That will be something determined by investors, at a later date.
  4. Additionally, with PIC, the investors may recoup something in the Keystone Business Park, as we are currently working toward moving that action forward and hope to find a structured settlement that will allow investors to derive benefit.  As PIC has a mortgage on that investment there is a hope for PIC to recoup something there as well.
  5. To be clear, the “settlement” in this case is that the claim will be discontinued, with a $60,00.00 contribution from the Defendants for both actions. Those funds will be solely directed to offsetting the fees and disbursements of the legal actions.  Everyone who made contribution toward disbursements in either action will receive the entirety of their contribution returned.
  6. We are not promising anyone in either PIC or Venu that the business option will be successful.  But what we can tell you now is that based on investigation of the encumbrances, and based on the sworn evidence we have, there is zero equity currently in either project and they are total losses for investors.  We are going to try to help investors find a way to realize value here by trying to find experienced developers to assist with completion of work.
  7. We have heard from several investors who have expressed dissatisfaction that this settlement will not “punish” the Cadmans.  Civil litigation is not about punishment.  The Alberta Securities Commission has some hearings with the Cadmans in relation to some of their investment vehicles and you can look those up if you wish.  However, sanctions relate to fines paid to the ASC and that provides no benefit to investors.  The focus of the lawsuits is to attempt to help investors recoup and mitigate their investment here.  In other words, this is about trying to find value for investors.  There is no prospect of that through litigation.

Given the fact that we are likely years away from getting to and through a trial, there is no money or appetite of investors to run a trial, and the fact that the Cadmans have confirmed that the PIC and Venu / Keystone projects have no funds to collect on, there really is no choice here.

Faced with these risks, we have structured a proposed settlement which allows investors who have contributed towards the legal disbursement costs of the litigation to recover those amounts, which frees us to seek a negotiated business solution with other creditors. If you are not happy with this, you are entitled to Opt-Out, and you can try to sue on your own, if you cannot accept any of the above.

We understand that this information is hard to process and accept.  Please do not “shoot the messenger”.  Bluntly, these projects have failed and the money is spent.  And unfortunately, most of the monies were distributed out at the front end of these investments and all of that was disclosed to you in your Offering Memorandums.

We hope this clarifies some of the concerns investors have about the settlement. We look forward to updating investors after September 9th, 2015.  We trust everyone will opt in, and we look forward to meeting all of you when we try to put together a structure to complete the Venu project and PIC investors will also be involved in our attempt to deal with the Keystone Business Park.

-Kevin McGuigan

UPDATE: July 9th, 2015:

Notice of Settlement Approval Hearing

Kevin McGuigan is pleased to announce that on June 23rd, 2015, Justice Macleod granted the Settlement Approval Hearing Order.  This will mean the following:  In the next several weeks, investors in the CBI Property Income Corp investment will receive a “Notice of Settlement Approval Hearing”  from Defendants’ counsel. This means that a date has been set for the court to approve the settlement between Class Members and the Defendants.

If you do not receive anything about CBI PIC and you are an investor, please email Kevin at directly.  Please only email if you do not receive the forms.  If you receive the forms, you do not have to do anything at this time. If you do not approve of the settlement as proposed then review the Notice, which will set out your options.

We have a return date of September 9th, 2015, before Justice Macleod.  At that application, we will seek to approve the settlement. If the settlement is approved, then a second notice will be sent to all investors, informing everyone of the settlement. At that time investors will either make a claim to be a part of the settlement, or have the option of opting out of the settlement and proceeding with their own individual claim against the Defendants.

To review the proposed settlement agreement, please click HERE or visit the “Form Download” page.

-Kevin McGuigan