Two arrest warrants were issued in mid-July for a ÎÚÑ»´«Ã½ developer, over his company's failure to pay contractors on a partially completed Kelowna development.
The legal battle, , revolves around Cynterra Group’s Promontory development, a 120-unit townhouse development on the southeast slope of Knox Mountain, on Boynton Place.
In mid-July, two arrest warrants were issued for Cynterra CEO Bob Fraser for failing to appear in court for a “payment hearing.” The hearings were to be held to determine how Fraser planned to repay two default judgments that had been ordered against his company for unpaid security monitoring services and for appliances for the Promontory development.
The default order in favour of security company Six Technologies was for more than $34,000 while the Trail Appliances judgement totalled more than $46,000.
Fraser, a Vancouver resident according to civil court documents, appeared in court in Vancouver on July 23, a week after the warrants were issued, and he was released on a promise to appear at future payment hearings in August and September.
Back on July 19, Fraser told the Investigative Journalism Foundation that his company owed “a very small amount” compared to the scale of the project, and he'd “never heard of something like this.”
“Good god. I don't know what to say other than it'll all get paid in the next few days,” Fraser told the Investigative Journalism Foundation.
Cynterra Group's says the Promontory project is 60% completed, and is “moving towards construction of the final phase.”
In their notice of civil claim, Six Technologies says they provided security monitoring services from May 2022 to October 2023 and Cynterra “were repeatedly late in paying their monthly invoices.”
Six Technologies ended its contract with Cynterra in September 2023, as they said the developer owed them $33,935 for services provided.
In its civil claim, Trail Appliances says it agreed in April 2021 to supply fridges, ranges, dishwashers, washers and dryers for the Promontory development on credit. Some of the appliances were delivered in August 2023, but Trail says Cynterra has not paid them in full, and still owe $46,457.
Judges ordered default judgments in both cases, after Cynterra didn't respond to the civil suits.
The Investigative Journalism Foundation has that Cynterra, its predecessor Evest Funds and their associated companies have faced at least a dozen lawsuits from contractors claiming they haven't been paid for construction, building supplies, bookkeeping, architectural design, accounting, consulting, asbestos abatement and legal services.
Fraser said back in April those claims have largely been settled, or they soon will be, and that some buyers at Promontory have now moved into their units.
But Fraser appears to be facing other serious legal problems. Cynterra's website lists two projects, Kelowna's Promontory and Langford Gateway, a located in Langford on Vancouver Island.
“This exciting project which is comprised of a complete city block is in the planning phase. Updates will be posted as they become available,” the website describes Langford Gateway.
On Tuesday of this week, Lanyard Investment Inc. filed foreclosure proceedings in BC Supreme Court, alleging Fraser and Langford Gateway Developments have defaulted on their mortgage, and must now pay back more than $8.2 million, along with daily interest of more than $3,000 beginning July 25.
Lanyard's allegations have not been tested in court and neither Fraser nor Langford Gateway Developments has formally responded to Lanyard's petition to the court.
