Romspen Investors Are Mad As Hell! They’re Telling Romspen, “It’s My Money And I Want It NOW!”
Most Americans outside the world of commercial finance have never heard of Romspen. Let alone, their Romspen Investment Fund. That’s because Canadian commercial lenders like Romspen have a reputation of being the Fredo Corleone of the commercial lending industry. So, the experienced commercial real estate investors tend to shy away from companies like Romspen.
However, Romspen may become a household name and could go down in history as a Canadian AIG. Romspen investors are getting angrier and angrier everyday. The company could find itself under the microscope of US and Canadian regulators and ultimately implode.
For that, we need to step into Mr. Peabody’s Wayback Machine to the financial wasteland of the 2009. As shell shocked financial institutions combed the through the ruins and fallout from the 2008 financial holocaust. Not-so-smart people with money were clamoring for high risk investments with high returns.
Romspen stepped up to plate. They began lending money on high risk construction projects in the US and Canada. Romspen needed keep cash flow coming in from new investors to make redemption payments to previous investors. Some have called Romspen’s business model a ponzi scheme. But, is it? That’s for regulators and the courts in the US and Canada to determine.
Regardless if it is or isn’t, the business plan worked for over a decade. Investors were excited. Borrowers were making their payments. Investors were getting over an 8.5% return on their investments and Romspen was making money. In other words, everyone was making money and they were happy. However, investors weren’t asking questions about Romspen’s underwriting procedures.
The COVID-19 Pandemic Decimates Commercial Real Estate
Unfortunately, commercial real estate never recovered from the pandemic. A cascade of Romspen’s borrowers began defaulting on their loans. In a desperate gambit to stay alive, Romspen froze investor redemptions multiple times since April 2020.
With troubles mounting, Romspen froze redemptions from its fund multiple times in the past 2 years. They did this in a desperate gambit to conserve cash. But it wasn’t enough.
The company has finally began paying redemption payments. However, they there have been multiple distribution cuts. The fund now yields less than 2.5% annually. This less than a third of what Romspen investors were making before the pandemic. This is also roughly half of what investors can earn from ultrasafe guaranteed investment certificates.
As a result, new investors are running far away from Romspen.
Romspen Investors Are Expressing Their Frustration On The Internet
Many of these investors are seniors on a fixed income who need their redemption payments.
They are also beginning to express their frustration about Romspen on the internet. Check out some of these comments on Google.
Basically, Romspen investors are saying, “We want our money!”
As Jessica Kushner wrote on Google:
“This company is a nightmare! There should be a class action lawsuit or something that needs to be done to get the money out. This is my parents retirement and they can’t get out the money after multiple attempts and years at this point fighting for it. If any of the other investors on here happen to have more information to share please do as we are not sure how to move forward. When the company holds meetings for investors they don’t allow other attendees to share information and everyone remains anonymous so we have no way go speaking to one another. They also mute everyone’s mics so you can’t ask questions. This is very scary and they are taking advantage of investors. Please reach out so we can start working together.”
KR 6ix writes:
“This seems like a very sketchy and risky investment. My dad has been trying to get his money out for years but they are unwilling to release any funds. My dad is retired and needs this money. It is a shame these types of funds are not regulated. I feel like my dad will never see a cent and neither will any other investors.”
Mandy Sharpe writes:
“This investment firm is withholding the investment money of our deceased grandmother who passed in February 2020 and has refused to pay out the funds thus far after many attempts. All other parties ie, banks etc have all complied with her wishes based on her legal Will yet Romspen, continues to withhold the funds and we are now a year and a half since her passing. She would be devastated to know this was happening. We have now gone ahead and informed the media to hopefully expose the wrong-doings of this firm.
Isn’t it ironic that the only reason these investments were set up in the first place were so she had money to give to her family once she passed. Then it actually happens and they refuse to pay out what is owed?”
Check Out These Government Websites If You Feel You Are A Victim Of Investment Fraud By Romspen.
Filing A Complaint In Canada:
Contact The Canadian Investment Regulatory Organization (CIRO) At 1.877.442.4322 For More Information. You Can Also Email Them At firstname.lastname@example.org
If That Doesn’t Work, Contact Deputy Prime Minister And Finance Minister Chrystia Freeland:
If You Are An American Citizen. Contact These Federal Agencies:
You Can File A Complaint With The Securities And Exchange Commission By Clicking Here.
Also, You Can File A Complaint With The Federal Trade Commission By Clicking Here
In Addition, You Can File A Complaint With FINRA By Clicking Here