Stateview Homes: the last property unsold, and two discharges opposed

The land at 12942 York Durham Line in Stouffville was to carry about 206 townhouses. When Meridian Credit Union Limited applied in May 2023 to put its owner, Stateview Homes (Elm&Co) Inc., into receivership, the site was, in Meridian's words, "raw land or a pre-construction development property." Meridian had lent the company approximately $17.8 million under a credit agreement dated December 5, 2022, on a first mortgage and unlimited guarantees from Carlo Taurasi, his brother Dino Taurasi, a third director and Stateview Construction Ltd. Four more mortgages stood behind it, and Meridian's affiant swore that the credit union had not consented to the last two: $20.85 million in favour of Bergo Investment Limited, MCO Management Inc. and an individual, registered December 16, 2022, and approximately $37 million in favour of The Toronto-Dominion Bank, registered April 6, 2023, per the Affidavit of A. Waheed, May 5, 2023, paras. 3, 5, 7–8, 14, 17.

The TD mortgage came out of a lawsuit. In March 2023, TD sued Stateview companies, the Elm company among them, as well as the two brothers and others; according to Meridian's affidavit, TD alleged that the companies' accounts "were used to perpetrate an extensive cheque kiting scheme against TD, resulting in TD suffering losses in excess of $37 million." Under a settlement dated March 31, 2023, the settling parties, the Elm company and both brothers included, acknowledged joint and several liability to TD for approximately $37 million plus interest and costs, agreed to pay the balance by July 14, 2023, and agreed to give mortgages on various properties as security, the Stouffville land among them. On April 4, 2023, Justice Koehnen directed the payments and appointed BDO Canada Limited as information officer. On or about April 12, the interest payment due to Meridian on April 9 was returned by TD as "Funds not Cleared," per the Waheed Affidavit, paras. 18–20, 25.

Justice Penny appointed KSV Restructuring Inc. receiver on May 18, 2023, unopposed, finding "significant utility" in KSV taking the role it already held in other Stateview receiverships started by Dorr Capital Corporation, a subsequent mortgagee on the land, per the Endorsement of Penny J., May 18, 2023, paras. 4–6. Since June 1, 2026, KSV has been AlixPartners Restructuring, Inc., with the same professionals, per the Sixteenth Report, July 30, 2026, s. 1.0, para. 1, n. 1.

Three years on the market

"The Elm Real Property is the last Stateview Group property remaining to be sold," the receiver's Sixteenth Report says. Cushman & Wakefield ULC was retained to list it around the time the court approved the sale process on June 5, 2023, and still is. The initial offer deadline was July 25, 2023. "The offers submitted were not accepted and the Sale Process has continued since that time," per the Sixteenth Report, July 30, 2026, s. 1.0, para. 4; s. 2.2, paras. 1–2.

Before the receivership, according to the group's own listing, 145 purchasers had paid approximately $16.076 million in deposits on homes to be built there, per the Eighth Report, Mar. 13, 2024, s. 2.0, para. 5. On March 19, 2024, Justice Penny authorized the receiver to terminate and disclaim their agreements, with those on two other Stateview projects, so that buyers could claim against Tarion Warranty Corporation's guarantee fund for 10% of the purchase price, to a maximum of $100,000. The statutory regime for freehold homes, unlike the condominium regime, does not require pre-sale deposits to be held in trust, the judge wrote, and "the evidence is that 100% of the deposit monies on these three projects, representing over $34 million, was spent by Stateview in advance of these proceedings." Quite a number of home buyers appeared at the Zoom hearing; for most home buyers, the endorsement says, such deposits "likely represent the only means by which they may be able to purchase a home," per the Endorsement of Penny J., Mar. 19, 2024, paras. 2, 6, 10, 21.

Borrowing ahead of the mortgages

The Sixteenth Report, dated July 30, 2026, seeks its own approval and a larger borrowing charge. The receiver has joined a landowners' group of nearby development owners that makes cash calls on its members, and says paying them "is required for the Receiver to continue to participate in and receive information from the LOG." As development activity on the project increases, it has hired Tercot Development Inc. as development manager, and "Tercot is actively considering development issues, including the best development for the site," per the Sixteenth Report, s. 1.1, para. 1; s. 2.3, para. 1; s. 4.0, para. 4(b).

The receivership order let the receiver borrow up to $250,000 on a charge ranking ahead of the mortgages. It has borrowed all of it, and says it needs more "to pay the past due amounts owing to professionals and to advance the development process, including dealing with LOG matters and funding periodic cash calls, which are expected." It asked for a $1 million limit, in part because "there is no definitive timing for the sale of the Elm Real Property" and further motions just to raise the limit would add cost. Meridian, the senior secured creditor, consented; the receiver said it knew of no party that would be prejudiced, per the Sixteenth Report, s. 1.0, para. 3; s. 1.2, para. 1; s. 4.0, paras. 1–4.

Behind that charge, the report lists the mortgages on title: Meridian's $17,800,000, Dorr's $4,000,000 and 797377 Ontario Inc.'s $2,500,000, all registered December 9, 2022; $20,850,000 in favour of Bergo, MCO and the individual co-mortgagee, registered December 16, 2022; and TD's $37,134,091, registered April 6, 2023, per the Sixteenth Report, s. 3.0, para. 1. It does not say how much is owing on any of them.

On August 6, Justice W.D. Black found the report "helpful and appropriate," found that it explained "the need and rationale for the increase sought," and recorded counsel's confirmation that "there does not appear to be any opposition to the relief sought," per the Endorsement of Black J., Aug. 6, 2026, paras. 1–4. The order signed that day replaces "$250,000" with "$1,000,000" in paragraph 22 of the receivership order; the charge still ranks in priority to all security interests, subordinate to the receiver's charge and the charges in ss. 14.06(7), 81.4(4) and 81.6(2) of the BIA. The order also approves the Sixteenth Report and records that no one appeared for any other party, although duly served, per the Order, Aug. 6, 2026, recitals and paras. 3–4.

The guarantors

The receiver has described Carlo and Dino Taurasi as the group's principals, its chief executive officer and president, per the Twelfth Report, Nov. 15, 2024, s. 2.1, para. 4. KingSett Mortgage Corporation applied for bankruptcy orders against both on July 30, 2025. Associate Justice Rappos adjudged Carlo Taurasi bankrupt on October 10, 2025, the court finding that he had ceased to meet his liabilities generally as they became due, including to KingSett, which holds a writ; after KingSett advised of a clerical error, an order of October 22 appointed KSV Restructuring Inc. as trustee in place of KSV Advisory Inc., per the Order, Oct. 22, 2025, para. 1 and Sched. "A", paras. 1–2. Associate Justice Ilchenko, as Registrar in Bankruptcy, made the same finding and adjudged Dino Taurasi bankrupt on December 16, 2025, per the Bankruptcy Order, Dec. 16, 2025, paras. 1–2.