First Swiss Mortgage Corp. has been under court-appointed receivership since March 17, 2023, when the Ontario Superior Court of Justice (Commercial List) appointed KSV Restructuring Inc. as receiver on the application of the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario, under section 37 of the Mortgage Brokerages, Lenders and Administrators Act, 2006 and section 101 of the Courts of Justice Act (file CV-23-00696362-00CL). Audited statements as at August 31, 2022 showed assets of $61,000 against liabilities of $507,000 and a shareholders' deficit of approximately $446,000, with a mortgage portfolio of only $1.9 million against roughly $26 million represented to investors. The Mortgage Schedule showed investor balances of $26.3 million as at February 28, 2023; the receiver concluded investors' trust claims should fail and that they rank as unsecured creditors pari passu. The proceeding remains active.
The court granted an approval and vesting order for the sale to Zayoun Group Inc. Closing terms, as extracted: Vesting effective upon delivery of Receiver's Certificate confirming payment of purchase price and satisfaction of closing conditions.
Application filed, commencing the receivership of First Swiss Mortgage Corp. on the Commercial List of the Ontario Superior Court under file CV-23-00696362-00CL.
Statement of Claim of KSV Restructuring Inc. dated February 6, 2024 — Application / notice of application
The officer filed report no. Second Supplement to Second Report. The Company is bankrupt and no longer operating; its licensed insolvency trustee secured the former business premises after the March 2023 assignment in bankruptcy, while the Receiver continues investigating alleged diversion of investor funds by the Company's former sole director.
Source: Second Supplement to the Second Report of the Receiver dated June 16, 2023
Responding Application Record of Reza Nezami-Nia dated June 9, 2023 — Application / notice of application
Supplement to the Second Report to Court of the Receiver dated May 15, 2023 — Court officer report
The officer filed report no. Second Report. The Company, a mortgage lender/administrator, ceased operations following its assignment in bankruptcy; the Receiver is investigating alleged wrongdoing (mortgage discharges without investor repayment, under-registered mortgages, misappropriated funds transferred to a related company) and pursuing recoveries for Investors and other creditors, funded by an investor loan facility.
Source: Second Report to Court of the Receiver dated May 12, 2023
The officer filed report no. First Report. The Company, a mortgage lender and administrator, ceased operating after its March 15, 2023 assignment in bankruptcy and vacated its office; the Receiver is investigating an alleged scheme in which Investor funds went unused for mortgages and the Accounts operated as a Ponzi-like structure, with about $5.9 million transferred to the shareholder's account.
Source: First Report to Court of the Receiver dated March 31, 2023
Order appointing KSV Restructuring Inc. as receiver of First Swiss Mortgage Corp., on the application of FSRA's Chief Executive Officer, made Friday, March 17, 2023.
Debtor
First Swiss Mortgage Corp.
Receiver
KSV
Bench
| Judge | Court | On this docket | Cases on record |
|---|---|---|---|
| Justice Steele | Ontario Superior Court of Justice | 8 orders, Mar 2023 – Jun 2024 | 245 cases on record |
Counsel of record
| Party | Counsel | First seen | Source |
|---|---|---|---|
| ReceiverKSV | Bennett Jones LLP | 19 May 2023 | Order · 19 May 2023 |
| Trustee in bankruptcy | Torys LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| Applicant | Chaitons LLP | 17 Mar 2023 | Order · 17 Mar 2023 |
| CreditorBrian Kremer, Lorne Rose and Samaron Holdings | Aird & Berlis LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| CreditorDancap Private Equity Inc | Goodmans LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| CreditorDaniel Baum, Rose Baum and Jared Green | Stikeman Elliott LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| CreditorFinancial Services Regulatory Authority | Chaitons LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| CreditorJeffrey Shatford | Blaney McMurtry LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| CreditorReza Nezami-Nia | Karrass Law | 11 Jun 2024 | Service list · 11 Jun 2024 |
| CreditorWinnick Realty Corp | Marciano Beckenstein LLP | 11 Jun 2024 | Service list · 11 Jun 2024 |
| # | Priority class | Creditor | Amount | Source |
|---|---|---|---|---|
| 4 | Secured | First Swiss Mortgage Corp. (first mortgage over Rockland Property, held for benefit of Investors)First mortgage registered on title to Rockland Property; principal balance before accrued interest, approximately $643,000 — Realty taxes also in arrears in the approximate amount of $179,000, ranking ahead in priority as municipal claim — debtor: 2412379 Ontario Inc. (Property Owner) | $643K | Third Report of the Receiver dated June 14, 2024 |
| 4 | Secured | |||
| 4 | Secured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured | |||
| 8 | Unsecured |
7 more claims in 2 classes The stack holds Secured and Unsecured claims.
Every creditor and every amount, drawn to scale.
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See all plansSale approved — Transaction approved and vesting order grantedApproval and Vesting Order dated June 24, 2024 · 24 Jun 2024
| Purchaser | Price | Status | Source |
|---|---|---|---|
| Zayoun Group Inc.the Property Owner's right, title and interest in and to the property described in the Sale Agreement (the 'Property') · real property · agreement 22 May 2024 | Subscribers | Approved24 Jun 2024 | Approval and Vesting Order dated June 24, 2024 |
8 engagements · 3 firms — latest: KSV Restructuring Inc., to 31 May 2024Third Report of the Receiver · 14 Jun 2024
| Firm | Period | Hours | Fees | Rates | Source |
|---|---|---|---|---|---|
| (firm not named)capacity not statedfirm not named in the heading | — | — | — | Motion Record of the Receiver · 12 May 2023 | |
| Bennett Jones LLPCounsel to the receiver | — | — | — | Third Report of the Receiver · 14 Jun 2024 | |
| KSV Restructuring Inc.Receiverperiod 6 of 6 | to 31 May 2024 | — | — | Third Report of the Receiver · 14 Jun 2024 | |
| KSV Restructuring Inc.Receiverperiod 5 of 6 | to 31 Jul 2023 | — | — | not stated | Third Report of the Receiver · 14 Jun 2024 |
| KSV Restructuring Inc.Receiverperiod 4 of 6 | to 30 Jun 2023 | — | — | not stated | Third Report of the Receiver · 14 Jun 2024 |
| KSV Restructuring Inc.Receiverperiod 3 of 6 | to 31 May 2023 | — | — | not stated | Third Report of the Receiver · 14 Jun 2024 |
| KSV Restructuring Inc.Receiverperiod 1 of 6 | to 31 Mar 2023 | — | — | Second Report to Court of the Receiver · 12 May 2023 | |
| KSV Restructuring Inc.Receiverperiod 1 of 6 | — | — | — | Third Report of the Receiver · 14 Jun 2024 |
5 blurred figures above
What each firm billed — each as the filing states it, with its source.
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See all plansAs at ·
Cumulative receipts
$19.7M
As at 31 Mar 2023First Report to Court of the Receiver dated March 31, 2023
Cumulative disbursements
As at
Cash on hand
As at
Professional fees
As at
3 more reported figures, and the 2 totals the debtor stated at filing
Each one as the filing states it, with its source.
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See all plans| Date | Document | File |
|---|---|---|
Ancillary Order dated June 24, 2024
| PDF · Subscribers | |
Approval and Vesting Order dated June 24, 2024
| PDF · Subscribers | |
Endorsement of Justice Steele dated June 24, 2024
| PDF · Subscribers | |
| Factum of the Receiver dated June 20, 2024 | PDF · Subscribers | |
Motion Record of the Receiver dated June 14, 2024
| PDF · Subscribers | |
Third Report of the Receiver dated June 14, 2024
| PDF · Subscribers | |
Service List as at June 11, 2024
| PDF · Subscribers | |
| Statement of Claim of KSV Restructuring Inc. dated February 6, 2024 | PDF · Subscribers | |
| Letter to Investors re recoveries dated December 6, 2023 | PDF · Subscribers | |
Second Supplement to the Second Report of the Receiver dated June 16, 2023
| PDF · Subscribers | |
Responding Application Record of Reza Nezami-Nia dated June 9, 2023
| PDF · Subscribers | |
Endorsement of Justice Steele dated May 29, 2023
| PDF · Subscribers | |
Amended and Restated Appointment Order dated May 19, 2023
| PDF · Subscribers | |
Ancillary Order dated May 19, 2023
| PDF · Subscribers | |
Supplement to the Second Report to Court of the Receiver dated May 15, 2023
| PDF · Subscribers | |
Motion Record of the Receiver dated May 12, 2023
| PDF · Subscribers | |
Second Report to Court of the Receiver dated May 12, 2023
| PDF · Subscribers | |
Endorsement of Justice Steele dated April 3, 2023
| PDF · Subscribers | |
First Report to Court of the Receiver dated March 31, 2023
| PDF · Subscribers | |
Endorsement of Justice Steele dated March 19, 2023
| PDF · Subscribers | |
Receivership Appointment Order dated March 17, 2023
| PDF · Subscribers | |
Application Record dated March 15, 2023
| PDF · Subscribers | |
| Factum of the Applicant dated March 15, 2023 | PDF · Subscribers | |
Filing titles and dates are public, and so is each filing's own page. The figures read from them are for subscribers.
CiteProceedings., “First Swiss Mortgage Corp.” (Receivership (court-appointed)), Ontario Superior Court of Justice. Retrieved 4 November 2026, https://proceedings.ca/case/first-swiss-mortgage-corp
Sources last checked · summary updated 20 August 2026 · Report a correction · Printed from proceedings.ca/case/first-swiss-mortgage-corp
Facts and summaries are extracted automatically from the court filings linked on each page; the filings remain the authoritative record. Suggested corrections are reviewed against the source filings.