Ontario Securities Commission investigating York Region real estate firm with ties to Toronto FC

A real estate investment company that once ran a $1-Million Dream Home contest for Toronto FC is facing allegations that its chief executive officer misused investors’ money to buy luxury cars, an expensive home and pay himself “excessive” management fees.

Titan Equity Group Ltd. and its CEO, Lance Kotton, raised $30.7 million from 335 investors starting in 2011 against three development properties in York Region, the Ontario Securities Commission alleges in court documents.

The Concord, Ont.-based company and Kotton were both placed into receivership by an Ontario Superior Court of Justice at the regulator’s request on Nov. 16, owing $21.6 million to investors.

The OSC issued a temporary cease-trade order against Titan Equity and Kotton on Nov. 6, which has been extended to Dec. 17.

No criminal charges have been laid. The OSC investigation is continuing.

Kotton says he was “ambushed” by the OSC and given no time to defend himself before his company, his home and assets were all tied up by the court.

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