'Where am I going to get the money?' Former condo king calls $14M OSC penalty a 'witch hunt'

The enforcement action comes after Stinson failed to hand over more than $14 million ordered by the Capital Markets Tribunal. This is following findings that he broke securities regulations while soliciting capital for a major cross-border commercial venture.

“Where am I going to get the money?” Stinson told the Star, calling the ongoing regulatory actions against him as a “witch hunt.” Stinson now lives in a run-down warehouse in Hamilton after his $1.4-million home was sold under power of sale. He’d originally intended to convert the building into a mixed commercial and residential development, but having been found in violation of the law, he’s now on the verge of bankruptcy.

Unpaid fines trigger regulatory enforcement

The current legal feud stems from a December 2023 ruling by the Capital Markets Tribunal. Regulators determined that Stinson and his associated corporate entities improperly raised about $19 million from private investors to acquire and renovate the sprawling Buffalo Grand Hotel in western New York.

According to tribunal findings, the pitch involved distributing securities without issuing a required prospectus, failing to maintain accurate corporate accounting and mismanaging investor money.

The tribunal instructed Stinson to pay more than $13 million in disgorgement alongside $600,000 in administrative penalties and legal costs. While regulators initially delayed strict collection efforts to give Stinson time to refinance the property, the agency moved forward with bankruptcy proceedings after alternative financing arrangements fell apart.

Cross-border project collapses in New York State

Stinson’s plan to settle his debts hinged on turning around the historic Buffalo venue. However, the project hit severe delays and mounting municipal challenges across the border.

Municipal officials in Buffalo launched proceedings in late 2025 to officially declare the property abandoned, pointing to outstanding property taxes, safety code violations and an active vacate order. When additional financing negotiations collapsed earlier this year, provincial regulators concluded that investors were unlikely to recover their capital through the hotel project alone.

In court filings, provincial regulators stated that seeking a court-appointed bankruptcy trustee represents the only remaining path to potentially liquidate Stinson’s remaining assets and recover funds for affected investors.

Historic rise and current legal battle

The dispute marks a dramatic shift for a developer who helped pioneer condo loft conversions in Ontario during the 1990s. Stinson built a widespread public profile through high-energy television marketing campaigns and signature Toronto developments, including the Candy Factory Lofts and the One King West hotel tower.

Despite the pending tribunal proceedings, Stinson rejects accusations of intentional wrongdoing, maintaining that regulatory rules have unfairly paralyzed his operations. A public bankruptcy hearing is set to take place in court next month to determine if a trustee will assume control over his estate.

The bottom line

For now, the man once celebrated for reshaping Toronto’s skyline is left waiting on a courtroom decision that could strip him of what little he has left. Whether Stinson can stave off bankruptcy may come down to next month’s hearing, where a judge will decide if a trustee should take control of his remaining assets. Until then, the self-styled Condo King insists he’s the target of overzealous regulators rather than a fair reckoning for his conduct.