LEVEL and Park & Maven home buyers: Do your due diligence.
Has developer, Jayen Properties, disclosed the following?
Jayen Homes - a residential construction contractor affiliated with Jayen Properties and led by the same president - was sued last year by affiliates of the Siksika Nation for alleged fraud and misappropriation of almost $16 million in funds.[1] The president of Jayen Properties, Jayen Homes, and 9 other related companies were named in the lawsuit. Jayen Properties was not named in the suit.
Jayen’s president co-owns Westin Calgary Airport and two Edmonton hotels through companies he controls and through a joint venture with Siksika Nation affiliates. According to the lawsuit, money that was allegedly supposed to go to Westin Calgary Airport while serving as a COVID-19 quarantine facility was transferred to companies controlled by Jayen’s president, including Jayen Homes, or directed to offshore accounts.[2]
In August 2023, the Siksika Nation affiliates successfully petitioned a court to appoint PricewaterhouseCoopers (PwC) as Interim Receiver to take financial and operational control of Westin Calgary and the two Edmonton hotels. The Interim Receiver temporarily replaced Jayen’s related company, PHI Hotel Group, the operator of the three hotels, with Pomeroy, a third party hotel management company. Pomeroy will continue to operate Westin Calgary Airport after the receivership.
The Court also ordered the freezing of several bank accounts linked to Jayen’s president, including one used by Jayen Homes.[3] According to an affidavit from the CFO of Jayen Properties, the personal bank accounts of Jayen’s president were frozen.[4] The freeze was later scaled back and limited to accounts tied to the three Alberta hotels.[5]
Jayen’s president has denied the allegations.[6]
On or around August 13, 2024, the parties entered into a settlement agreement. Terms of settlement have not been disclosed.[7] The receivership has been in place from August 2023 into November 2024 and may soon end.
Do your due diligence and inform yourself.
Ask Jayen Properties how the court orders, interim receivership, and asset freeze impacted the developer’s financial stability.
Ask Jayen about the outcome of this legal action, the receivership, and terms of settlement.
As a term of settlement, will Jayen’s president and affiliated companies pay up to $16 million, or additional funds, to Siksika Nation affiliates?
[1] https://www.cbc.ca/news/canada/calgary/calgary-quarantine-hotel-civil-lawsuit-1.6964389
[3] Affidavit, September 6, 2023. 2041366 Alberta Ltd., Siksika Calgary Airport Limited Partnership and Siksika Edmonton Hotel Limited Partnership v. PHI Hotel Group Inc., PHI Hospitality Ltd., Sukhminder Rai, Jayen Homes Ltd., RBI Forming Ltd., RBI Developments Inc., RBI Construction Group Inc., Signature Capital Inc., 100th Avenue Commercial Ltd., Jeevan Investments Ltd., and 1165905 BC Ltd.
[4] Ibid. (Section 10)
[5] Consent Mareva Injunction/Attachment Order, September 21, 2023. Calgary 2301-04073 (Alta QB). 2041366 Alberta Ltd., Siksika Calgary Airport Limited Partnership and Siksika Edmonton Hotel Limited Partnership v. 2041357 Alberta Ltd., PHI Hotel Group Inc., PHI Hospitality Ltd., Sukhminder Rai, 1993293 Alberta Ltd., Jayen Homes Ltd., RBI Forming Ltd., RBI Developments Inc., RBI Construction Group Inc., Signature Capital Inc., 100th Avenue Commercial Ltd., Jeevan Investments Ltd., 1165905 BC Ltd. and 2229971 Alberta Ltd.
[6] https://www.cbc.ca/news/canada/calgary/calgary-quarantine-hotel-civil-lawsuit-1.6964389
[7] Sixth Report to the Court submitted by PricewaterhouseCoopers in capacity as receiver, November 4, 2024. Calgary 2301-04073 (Alta QB). 2041366 Alberta Ltd., Siksika Calgary Airport Limited Partnership and Siksika Edmonton Hotel Limited Partnership v. 2041357 Alberta Ltd., PHI Hotel Group Inc., PHI Hospitality Ltd., Sukhminder Rai, 1993293 Alberta Ltd., Jayen Homes Ltd., RBI Forming Ltd., RBI Developments Inc., RBI Construction Group Inc., Signature Capital Inc., 100th Avenue Commercial Ltd., Jeevan Investments Ltd., and 1165905 BC Ltd.