Former child actor Bobby Clark, known for his role in a popular television series, has found himself at the center of a financial scandal involving a real estate investment enterprise that has gone insolvent. The enterprise, which owns 405 rental properties in Northern Ontario, is now facing demands for millions of dollars in unpaid debts, leaving Clark and his business partners in a precarious situation.
Clark, along with his business partner, Jacob Norris Tayler, also known as Jake Tayler, and Paula Rae McFarlane, are among a dozen borrowers who are facing legal action for failing to repay loans taken out from private lenders. The loans were used to fund their real estate investment businesses based in London, Ontario. Despite starring in a television series based in Stratford, Ontario, the trio has been unable to meet their financial obligations, leading to default judgments being issued against them.
The collapse of the real estate investment enterprise, controlled by Clark, has had far-reaching consequences for not only the borrowers but also for the lenders involved. Claire Drage, a former mortgage broker who facilitated close to $130 million in private mortgage and promissory note loans for the insolvent company, is now facing scrutiny for her role in the lending collapse. The lack of oversight and permissive regulations surrounding promissory notes has made it difficult for lenders to recoup their investments, leaving many individuals in a precarious financial situation.
The fallout from the lending collapse has resulted in a series of court judgments ordering borrowers to repay millions of dollars in debt. Small lenders who extended loans through Drage’s Lion’s Share Group Inc. are now facing demands from investors to repay loans or pay overdue interest. The extent of the debt owed by the borrowers is staggering, with some individuals owing hundreds of thousands of dollars to lenders.
In one instance, Ontario resident Eleanor Wallace won a default judgment for over $596,000 against a group of borrowers, including McFarlane/Tayler, Kyle McDonald, Nels Moxness, Mike and Krista Killingsworth, Darcy Roberts, and James Dunn and Rozanne Godin. Other lenders, such as LMMD Inc., Salinas Ventures, and Serena Holmes, have also been successful in obtaining court judgments against the borrowers for significant amounts.
The legal proceedings surrounding the lending collapse are ongoing, with numerous claims pending in various Ontario court jurisdictions. While none of the claims have been proven in court, the situation highlights the risks associated with investing in promissory notes and the importance of conducting thorough due diligence before entering into financial agreements.
Overall, the lending collapse involving Bobby Clark and his business partners serves as a cautionary tale for investors and borrowers alike, emphasizing the need for transparency, accountability, and responsible financial management in the real estate industry. As the legal proceedings continue to unfold, the repercussions of the collapse are likely to have long-lasting effects on all parties involved.