Community Alert: Fortress Syndicated Mortgage Fraud Leaders Sentenced in Ontario After Defrauding Hundreds of Investors

Section 1: Summary of the Alert

The Royal Canadian Mounted Police (RCMP), Federal Policing – Central Region in Ontario has announced that Jawad Rathore, 49, of Richmond Hill, and Vincenzo Petrozza, 50, of Markham, have been convicted and sentenced in connection with a large-scale syndicated mortgage investment fraud tied to Fortress Real Developments Inc. The case stems from a long-running RCMP investigation led by the Toronto Integrated Market Enforcement Team (IMET).

On February 2, 2026, the Ontario Court of Justice found that both men intentionally misled investors about the true value and security of certain syndicated mortgage loans used to finance construction projects. Approximately 800 investors, many described as everyday “mom and pop” investors, suffered severe financial and psychological harm as a result of the scheme, which ran for nearly four and a half years.

Section 2: Official Details from the RCMP

According to the official RCMP release, key findings and court outcomes include:

• Convicted individuals:
  • Jawad Rathore, 49, of Richmond Hill, Ontario
  • Vincenzo Petrozza, 50, of Markham, Ontario
• Corporate context: Rathore and Petrozza were described as the principal decision-makers or “operating minds” of Fortress Real Developments Inc., a company based in Richmond Hill, Ontario, which raised money for real estate development through syndicated mortgage investments.
• Criminal charges and convictions:
  • Each was convicted of one count of Fraud over $5,000 under the Criminal Code.
• Court findings on misconduct:
  • The Court determined that in some projects, investors were misled about the actual security they were receiving in the syndicated mortgage loans.
  • The known “as is” property values held by Fortress were not fully disclosed, which the Court deemed a failure to reveal important, material facts to investors.
  • The judge concluded beyond a reasonable doubt that both men intentionally misrepresented the value and security of investors’ interests to induce them to invest.
• Sentencing (February 2, 2026):
  • 5-year penitentiary sentence for each of Rathore and Petrozza.
  • A DNA order was issued in relation to each offender.
  • Each was ordered to pay $12.2 million in restitution.
  • In default of payment of the restitution, each faces an additional 5-year term of incarceration.
  • They were given 10 years to comply with the restitution orders.
• Impact on victims:
  • The fraud spanned almost 4.5 years and involved a high level of planning and complexity.
  • Close to 800 investors were affected, many of whom were smaller, individual investors.
  • The Court recognized that many victims suffered major financial losses, in some cases described as financially catastrophic.
  • The judge noted significant psychological harm to most victims, with some experiencing serious declines in mental health that also affected their physical well-being.
  • The sentencing judge emphasized that no penalty could fully restore victims’ losses or undo the damage, and commented on the absence of clear evidence of genuine remorse.
• Appeal status: Both Rathore and Petrozza have filed an appeal against their convictions with the Ontario Court of Appeal.
• Investigative partners: The RCMP’s Toronto IMET highlighted support and collaboration from:
  • Financial Services Regulatory Authority of Ontario (FSRA)
  • Appraisal Institute of Canada (AIC)
  • Forensic Accounting Management Group (FAMG)
  • Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), which supplied actionable financial intelligence
• RCMP mandate reminder: The Toronto Integrated Market Enforcement Team is a specialized RCMP unit focused on protecting the integrity of Canada’s capital markets by identifying, investigating, and deterring investment and securities-related fraud.

The RCMP continues to encourage Canadians to undertake thorough due diligence before investing. Anyone with information about investment fraud, money laundering, or related criminal activity is urged to contact:

• Your local police service
• Ontario RCMP: 1-800-387-0020
• Crime Stoppers (anonymous tips): 1-800-222-8477 (TIPS)

Section 3: CrimeCanada.ca Safety Perspective

From the perspective of CrimeCanada.ca, this case underscores how complex investment products, such as syndicated mortgages, can be misused to target everyday Canadians who are trying to build retirement savings or secure their financial future. The scale of this fraud, and the serious emotional and financial consequences for hundreds of investors, highlights the importance of asking tough questions before investing and verifying information with independent, qualified professionals.

For community safety, financial crime is not just about dollars lost—it can destabilize families, impact mental and physical health, and erode trust in legitimate financial markets across Canada. When considering investments, especially in real estate or private offerings, residents should request written documentation, seek independent legal or financial advice, and verify claims about security, guarantees, and appraised values. Suspicious or high-pressure investment pitches should be reported promptly to local police, the Ontario RCMP at 1-800-387-0020, or Crime Stoppers at 1-800-222-8477 (TIPS). Community vigilance and early reporting are critical to preventing large-scale financial harm.

Official Source & Community Safety

This safety alert is based on an official release from the Royal Canadian Mounted Police (RCMP). CrimeCanada.ca aggregates and analyzes this data to keep the canada community informed, aware, and safe. We are an independent safety data aggregator and not the original creators of the underlying incident report.

Read the full official release here: RCMP Official Statement.