FAQ

Frequently Asked Questions

Sussman Group Receivership Proceedings

The questions set forth below include some frequently asked questions received by Aird & Berlis LLP (“Aird & Berlis”), as Representative Counsel, to date, and the responses are intended to provide some clarity into this ongoing process.

As these proceedings are evolving in real time, and additional issues may arise, the following FAQ may be updated from time to time. We will make best efforts to provide timely updates to Investors.

What is a Receiver?

A Receiver is a third party appointed by the Court, typically for the purpose of taking possession of a debtor’s assets and selling these assets subject to Court supervision. A Receiver can be appointed by way of an application made by one of the debtor’s creditors.

Why was a Receiver appointed over Sussman Mortgage Funding Inc. and its related companies?

The Financial Services Regulatory Authority of Ontario (“FSRA”) brought an application to appoint a Receiver over Sussman Mortgage Funding Inc. (“SMFI”) and its related companies in response to allegations of wrongdoing and various lawsuits brought by Investors.

In FSRA’s view, the Receiver can ensure that “SMFI’s affairs are managed in the best interests of all its investors.” You can read FSRA’s announcement here. 

Who is FSRA?

FSRA is a government regulatory agency. They regulate multiple sectors, including mortgage brokers. You can learn more about FSRA here.

Who is the Receiver?

B. Riley Farber was appointed the Receiver. B. Riley Farber is a business advisory firm that regularly acts as court officers in various insolvency and receivership proceedings. The Receiver keeps a website with updates on the receivership proceedings. Click here to access the website.

What is the role of Representative Counsel and why was it appointed?

Aird & Berlis was appointed as Representative Counsel by way of court order dated May 20, 2025, on behalf of all lnvestors in connection with the receivership proceedings involving SMFI, 2486976 Ontario Inc. and 1981361 Ontario Inc.

The Representation Order defines Investors as “investors who invested in mortgages brokered and administered by SMFI pursuant to any written, oral, express or implied investor agreements entered into with SMFI […] in respect of the claims of the Investors in this proceeding.”

The Representative Counsel’s role is to represent the interests of the Investors (as defined in the order), unless an Investor has chosen to opt out of the process (as further explained below).

Aird & Berlis is a law firm with offices in Toronto and Vancouver. The firm regularly acts on insolvency and restructuring mandates, including as Representative Counsel.

You can learn more about the team at Aird & Berlis here.

Where can I access Representative Counsel’s Case Website?

Representative Counsel has established a Case Website which can be accessed here.

How will updates be communicated by Representative Counsel to Investors?

Investors’ email addresses have been added to Representative Counsel’s email distribution list. Most often, updates will be sent to Investors by email, as opposed to being posted on Representative Counsel’s Case Website, in order to protect the privileged nature of Representative Counsel’s communications to Investors.

How can I be represented by Representative Counsel?

If you are an Investor who has invested in mortgages brokered and administered by SMFI, you are automatically represented by Representative Counsel, unless you choose to opt out.

What if I do not want to be represented by Representative Counsel?

If you are an Investor who does not wish to be represented by Representative Counsel, you may opt out of the process by notifying the Receiver and Representative Counsel in writing. You can fill out the Opt-Out Notice and provide a copy by email to the Receiver and/or Representative Counsel.

You can download a copy of the Opt-Out Notice here.

Please note that if you choose to opt out, you will not lose any entitlement you may have, if any, to any claims process that may be carried out. However, if you wish to obtain legal assistance about your rights within this process, it will be at your own expense if you wish to opt out.

You must notify the Receiver and Representative Counsel of your decision to opt out by no later than 5:00 p.m. on June 6, 2025.

Will I have to pay to be represented by Representative Counsel?

There are no direct, out-of-pocket payments required to be made by the Investors in order to be represented by Representative Counsel. The fees and disbursements of Representative Counsel will be funded from available recoveries generated in these receivership proceedings, in accordance with the Representation Order.

How can I stay updated about the receivership proceedings?

The Representative Counsel will provide updates to Investors who do not opt out by email. Updates may also be posted on the Representative Counsel’s website which can be accessed here.

Investors are also suggested to review the Receiver’s Case Website for additional information on the receivership proceedings linked here.

How do I ask questions, raise concerns or communicate information of potential interest to Representative Counsel?

Please feel free to send your questions and comments to Representative Counsel by email to sussmanrepcounsel@airdberlis.com. Please note that Representative Counsel may not be in a position to provide specific advice tailored to your individual situation. However, we will endeavour to respond as best we can to every question that we receive.

Please note that email is the most efficient way to communicate with Representative Counsel.

Is the receivership permanent?

No, receiverships are not intended to be permanent. They continue until an Order discharging the Receiver is made by the Court. This usually occurs after the sale of the assets subject to the receivership.

Is there an estimate as to how long it will take to resolve this matter?

At this time, it is too early to know or say how long this matter will take to resolve. Representative Counsel will provide an update as more information becomes available.

Will my name and other personal information be disclosed to other Investors in the receivership proceedings?

No. While all personal information of Investors is to be provided by the Receiver to Representative Counsel for the purpose of carrying out its mandate, Representative Counsel is required by court order to maintain and protect the privacy of such information and limit the use of such information to the performance of its mandate.

Is there any action required of Investors at this time?

At this time, there is no action required of Investors unless you wish to opt out of representation by Representative Counsel. If you wish to do so, please follow the opt-out instructions articulated above by the corresponding deadline of 5:00 p.m. EDT on June 6, 2025.