Sponsored by Verses AI

GTA developer accused of misappropriating millions

Trouble seems to be brewing for Markham-based real estate developer Sunrise Homes as allegations of unlawful misappropriation of millions of dollars have come to light, raising concerns about the company’s financial stability.

The directors of the company, Muzammil Kodwavi and Sajjad Hussain, have been accused of diverting substantial sums of money from various construction projects for their personal use, in violation of legal and fiduciary obligations.

According to recent reports, Kodwavi, during cross-examination, admitted to the diversion of funds from one construction project to cover costs at others, repeatedly. This practice, he claimed, was common within the construction industry. However, questions remain about the legality and consequences of such financial maneuvers, especially if the projects take a downturn.

You can read more on the matter here.

What’s going on?

• Sam Bankman-Fried’s Bid for Temporary Release Denied, To Stay In Jail For Trial (theDeepDive)

• Trudeau Government Subsidizes Yet Another EV Project (theDeepDive)

• US Supreme Court to weigh state laws constraining social media companies (Reuters)

• Senator Dianne Feinstein Dies at 90 (theDeepDive)

• US Triple A Credit Rating in Jeopardy as Government Shutdown Nears, Moody’s Warns (theDeepDive)

• LVMH Billionaire Bernard Arnault Probed Over Possible Money Laundering (Bloomberg)

• BC Supreme Court Declares Province’s Mining Permit System Unconstitutional, Calls for Indigenous Inclusion (theDeepDive)

• Russia Mulling Extradition of Nazi SS Veteran Honoured by Canadian Parliament (theDeepDive)

• Suicide bombings rip through two mosques in Pakistan, killing at least 57 (Reuters)

• Trading Suspended: Is This The End Of The Line For Evergrande? (theDeepDive)

• Historically Low Water Levels at Panama Canal Drive Gas Carrier Rates to Record Peaks (theDeepDive)

What’s the latest?

• Defense Cuts: The Liberals are planning to cut nearly $1 billion from the annual budget of the Department of National Defence. The cuts could impact Canada's commitment to NATO, as the country currently spends around 1.3% of its GDP on the military, well below NATO's target of 2%.

• GDP Flat In July: Canada's gross domestic product remained essentially unchanged in July, with zero percent growth, which was below economists' expectations of a slight expansion of around 0.1 percent. The manufacturing sector experienced its largest contraction in over two years, shrinking by 1.5 percent. Preliminary numbers for August show a 0.1 percent expansion, lower than expected.

• UAW Strikes: The United Auto Workers union has announced plans to expand its strikes against Detroit automakers. Last week, the UAW added 38 parts distribution centers run by GM and Stellantis to the strikes. Now, the UAW plans to expand the strikes to include 7,000 more workers at a Ford plant in Chicago and a GM assembly factory near Lansing, Michigan.

• Rogers Strike: Around 300 former Shaw technicians who were absorbed by Rogers Communications during the merger between the two companies have voted overwhelmingly to strike. The workers are concerned about job security following recent layoffs and voluntary departures. Rogers had committed to creating 3,000 new jobs in Western Canada over five years as a condition of the $26 billion takeover, but the recent job losses have raised doubts about this commitment.

• 3AC Founder Arrested: Su Zhu, co-founder of the hedge fund Three Arrows Capital, has been apprehended in Singapore while attempting to leave the country. The liquidators of Teneo, which is handling the liquidation of the failed crypto hedge fund, stated that they received a committal order against Zhu for failing to comply with a court order to cooperate with the liquidation investigation. Zhu has been sentenced to four months in prison as a result of this committal order.

Doug Casey on navigating the recession

The stock market and stuff

• Albemarle Charged By SEC, DOJ For Using Bribes In Vietnam, India, Indonesia (theDeepDive)

• Is Binance Really Making A “Full Exit” From Russia? (theDeepDive)

• Apple Ordered to Face Antitrust Lawsuit Over Apple Pay Monopoly (theDeepDive)

• Snap Inc. Shuts Down AR Division After Short-lived Run (theDeepDive)

• Meta Unveils New Quest 3 VR and Ray-Ban Smart Glasses (theDeepDive)

In the juniors

• Aston Bay Reprices Financing 58% Lower After Investors Lose Interest (theDeepDive)

• Chijet Motor stock rises on new sales order of 435 vehicles (SA)

• Lithium Americas Slated To Complete Separation Of Business On October 3 (theDeepDive)

FULL DISCLOSURE: VERSES AI is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Verses AI. The author has been compensated to cover VERSES AI on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.