The founders of Fortress Real Developments have been sentenced to five years in prison following their conviction in one of Ontario’s most high-profile syndicated mortgage investment fraud cases.
The RCMP announced earlier this month that Jawad Rathore and Vincenzo Petrozza, described by the court as the figureheads behind Fortress, were each convicted of one count of fraud over $5,000 and sentenced to five years imprisonment.
The case, which involved nearly 800 investors and spanned almost four and a half years, marks the conclusion of a complex investigation by the RCMP’s Toronto Integrated Market Enforcement Team (IMET).
Court finds investors misled about loan security and value
Fortress, based in Richmond Hill, raised funds for real estate construction projects through syndicated mortgage investments.
In her Reasons for Judgment, Justice Moore of the Ontario Court of Justice found that Rathore and Petrozza “deceived investors with respect to the actual security they were being given in the [syndicated mortgage loans], and that the non-disclosure of the actual ‘as is’ value that was known to Fortress amounted to non-disclosure of material facts.”
RCMP states that Justice Moore further found beyond a reasonable doubt that both Rathore and Petrozza intentionally misled investors about the value of their secured interest.
Each was ordered to pay $12.2 million in restitution and given 10 years to satisfy the order. A DNA order was also issued. The court further imposed a five-year term of incarceration in default of payment.
“No sentence that I impose is going to get the investors their money back or undo the significant financial and psychological harms caused,” Justice Moore said, adding that she did not have any evidence of true remorse.
During sentencing, the court noted the fraud “involved a high degree of planning and complexity” and targeted “mom and pop” investors, with losses described in some cases as financially catastrophic. The court also found that many victims suffered psychological harm, with some experiencing serious deterioration in both mental and physical health.
“The RCMP is committed to protecting Canadians from large-scale financial crime,” said Superintendent Mia Poscente, Officer in Charge of Cyber & Financial Investigation Teams for Central Region (Ontario), in a statement. “This particular case is a significant outcome for the many investors of Fortress. This represents years of meticulous investigative work and close collaboration among multiple agencies to hold accountable the individuals who have abused the trust of investors.”
Industry response and broader implications
Mortgage Professionals Canada (MPC), the national association representing mortgage professionals, issued a statement following the judgment, emphasizing the importance of accountability and oversight.
“Fraud of any type has no place in Canada’s mortgage system. These actions undermine public trust and cause real harm to Canadians,” the association said.
“MPC supports strong regulatory oversight and rigorous enforcement to ensure accountability and the protection of both the consumer and the integrity of the mortgage industry. As the national association representing mortgage professionals, MPC remains committed to promoting the highest standards of professionalism, consumer protection, and measures to combat mortgage fraud.”
The judgment also drew reaction from industry observers who had followed the file closely.
Ben Rabidoux, founder of Edge Realty Analytics, questioned whether the sentencing goes far enough, having previously called for consequences when the case first emerged.
“It was nice to see the Fortress Real Developments founders end up having to do some jail time, barring a successful appeal,” Rabidoux said in a recent subscriber call. However, he noted it still felt like “a slap on the wrist.”
Rabidoux contrasted the penalties with U.S. sentencing outcomes in similar fraud cases, arguing that Canadian enforcement appears comparatively lenient. “They just treat fraud so much differently in the U.S. It kind of saddens me,” he said. “But, you take the wins where you can get them.”
The RCMP noted that IMET worked in collaboration with multiple agencies, including the Financial Services Regulatory Authority of Ontario (FSRA), the Appraisal Institute of Canada (AIC), the Forensic Accounting Management Group (FAMG), and FINTRAC.
Rathore and Petrozza have filed appeals against their convictions.
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Last modified: February 20, 2026