Three BG Wealth Group Properties Seized in November Over Millions in Unpaid Debts
On November 20, 2024, the Ontario Superior Court placed three BG Wealth Group-linked companies into receivership over unpaid debts tied to Owen Sound properties.
Kindred Credit Union, a financial cooperative out of Kitchener, has taken legal action to recover unpaid debts from three companies tied to BG Wealth Group investment properties in Owen Sound.
Editor’s Note: This article previously stated a figure of approximately $8 million was owed by BG Wealth Group, which was based on a statement of claim filed with the Owen Sound Superior Court of Justice. A representative of Albert Gelman Inc. insolvency trustees submitted to The Owen Sound Current that the actual amount owing was over $2.8 million.
As we reported on January 7, Craig Dunkerley and Claudia Harvey are facing increasing calls for answers as property tax arrears grow and investors in their BG Wealth Group real estate scheme complain they’ve been unable to recoup their investments.
BG Wealth Group bought several properties in Owen Sound and offered investors a crack at 14-16% returns, which they said they’d achieve by improving the properties and increasing rents.
Case studies now removed from the firm’s website boasted of results achieved by nearly doubling revenue from tenant rents at 261-281 9th St E, from $127,000 to $235,290. At 950-956 2nd Ave. Street East, the group claims they increased gross rental income from $28,800 to $187,692 per year.
While five BG Wealth Group properties were listed for sale in September 2024, we’ve now learned that a creditor had been trying to enforce security on three of them since March. Two months ago, they succeeded.
On November 20, 2024, the Ontario Superior Court of Justice in Owen Sound placed the assets of 10603503 Canada Inc., 11393251 Canada Inc., and 11393235 Canada Inc. into receivership after the companies defaulted on their loans. Directors Dunkerley and Harvey were also named in the proceedings.
Dunkerley personally guaranteed loans tied to the companies, including debts of $847,759.88 for 10603503 Canada Inc., $1,320,000 for 11393251 Canada Inc., and $480,000 for 11393235 Canada Inc.
Similarly, Blackthorn Investment Group, which Dunkerley and Harvey are associated with, also acted as a guarantor for these debts. Both Dunkerley and Blackthorn were named in the October 16, 2024, judgment, holding them jointly liable alongside the companies for repayment.
According to court documents published on receiver Albert Gelman Inc.’s website, the legal proceedings began on March 19, 2024, when Kindred issued formal demands for payment and notified the companies of its intent to enforce security on their properties under the Bankruptcy and Insolvency Act.
By May 2, 2024, Kindred had issued notices of sale for four mortgaged properties in Owen Sound.
Despite acknowledging their debts and agreeing to a settlement to repay, BG Wealth companies again failed to meet their obligations.
On October 16, 2024, the court ruled in favour of Kindred, awarding financial judgments against the companies and their guarantors. The court granted Kindred Credit Union possession of four properties in Owen Sound tied to unpaid debts—three buildings and one strip of land behind them.
Kindred Credit Union reported the respondents had not delivered possession of the properties or made progress on repayment, asserting to the court that the respondents were insolvent and had no further credit options.
According to the judgment, on November 20, 2024, the court placed the properties and all business assets of the companies under receivership to be managed or sold to satisfy the debts. This includes:
950-956 2nd Avenue East: A two-story commercial building with six residential units.
Mortgage: $847,759.88 (issued to 10603503 Canada Inc.)
Tax Arrears: $41,471 (as of November 1, 2024).
942-944 2nd Avenue East: A three-story property with commercial space and twelve residential units.
Mortgage: $1,320,000 (issued to 11393251 Canada Inc.)
Tax Arrears: $46,793.77 (as of November 1, 2024).
948 2nd Avenue East: A mortgaged property with significant outstanding debt.
Mortgage: $485,512.34 (issued to 11393235 Canada Inc.)
Additional Guarantees: $847,759.88 from 10603503 Canada Inc. and $1,320,000 from 11393251 Canada Inc.
Registry Parcel: Riverfront land linked to 942-944 2nd Avenue East,
Mortgage: $1,320,000 issued to 11393251 Canada Inc. on December 15, 2022.
This strip of property was transferred to one of Dunkerley’s companies by the City of Owen Sound in November 2022. The City declared that certain riverfront lands were no longer needed for harbour purposes and passed a bylaw authorizing their transfer through a quit claim transfer.
We were unable to locate By-Law 2021-005 and requested a copy from City Manager Tim Simmonds, who responded he would locate it by the end of the week.
While the above-mentioned properties on 1st and 2nd Ave East were seized in November, we have not been able to confirm their current status or ownership. Despite several attempts by phone and email, we were unable to get an update from Albert Gelman Inc. on what has transpired between November 20 and today.
Dunkerley and Harvey have not responded to our repeated requests for an interview. However, two weeks before the November 20 hearing, Dunkerley emailed The Owen Sound Current a letter.
“As you may be aware, the real estate market took a significant downturn in 2021 and is only seeing signs of positive movement again. In addition, the economy saw significantly increased interest rates, inflation, and a difficult economic market for all,” Dunkerley wrote, adding that unpaid rents and abandoned units complicated the situation.
“This significantly impacts our ability to repay the renovation costs and recoup our expenses. And it impacts the cashflow necessary to manage expenses,” Dunkerley explained.
“We stay the course and manage our business and properties, and our investors will be paid back their investment,” he promised.
While we have spoken with several investors, the exact number of people and scope of financial investments in BG Wealth Group’s real estate fund is not yet known. We asked three of those investors today to comment on the above news about the properties seizure. Each said they are still afraid to come forward for fear of retribution or reducing their chances of recovering their losses.
In the meantime, BG Wealth Group continues to advertise its real estate investments.
A page published three weeks ago on the BG Wealth Group website, attributed to Craig Dunkerley, is offering a new bookkeeping and tax preparation service for businesses. In a four-week event called “Unlock Your Wealth in 2025,” the firm promises to “teach you how to build a strong financial foundation, master tax strategies, and achieve real estate investment success.”
Source:
Albert Gelman Inc., accessed Wednesday, January 8, 2025.