Go-To respondents ordered to disgorge $22.2 million after real estate fraud

Oscar Furtado and three companies he controlled were ordered to disgorge $22.2 million and subjected to 10-year capital-market restrictions following findings of fraud involving real estate investments.

The Capital Markets Tribunal also imposed $1 million in administrative penalties on Furtado, $200,000 on each corporate respondent, and $638,613.85 in joint-and-several costs. The March 6, 2026 sanctions decision is Go-To Developments Holdings Inc (Re), 2026 ONCMT 12.

The respondents are Go-To Developments Holdings Inc., Go-To Spadina Adelaide Square Inc., Furtado Holdings Inc. and Furtado. Liability had been determined in May 2025.

Undisclosed benefits and changed investment risks

The earlier findings covered five frauds: concealing Furtado's intended personal benefit from a property acquisition; redeeming a large investor's units contrary to promised investment terms; using other partnerships' properties to secure Adelaide-project obligations; obtaining further investment using misleading capital-structure information; and defrauding the Adelaide partnership itself through the early redemption.

Furtado Holdings received approximately $6.4 million in dividends connected with the property transaction. The tribunal had also found that Furtado misled the OSC during its investigation.

For disgorgement, the panel started with $42 million raised for the Adelaide project. It deducted $2 million from an investor aware of Furtado's intended benefit and $17.8 million already returned through redemptions. It declined the OSC's proposed addition of approximately $6.4 million in dividends to that calculation.

Protective sanctions, not compensation

The tribunal said sanctions must protect investors and capital markets against future harm. It found that investors had faced risks materially different from those they accepted. Disgorgement was not compensation for proven losses: the later receivership did not break the link between the frauds and the money obtained. Payment is owed to the commission, not directly awarded to individual investors.

The panel declined to reduce disgorgement for speculative future receivership recoveries. It left parties able to seek a variation based on updated evidence about the receiver's ability to repay investors.

The panel considered the fraud serious but distinguished it from a wholly fictitious business. The development was real, and the capital-raising activity did not require registration. The misconduct did not involve trading in public capital markets, so the findings did not establish that the respondents could never again be trusted to participate. Taken together with the monetary sanctions, those distinctions supported 10-year restrictions rather than permanent bans.

Furtado's penalty comprises $750,000 for fraud and $250,000 for misleading the commission. Each company's $200,000 penalty reflects its role under his direction. The panel considered the seriousness of the conduct, Furtado's intended benefit and the need for deterrence.

For costs, the panel balanced recovery of enforcement expenses against discouraging respondents from defending allegations. It discounted incurred fees by 50 per cent and added disbursements, producing $638,613.85.

Ten-year restrictions with limited exceptions

The final order halts trading in the corporate respondents' securities and prohibits them from trading securities or derivatives or acquiring securities for 10 years, except for transactions by the receiver.

Furtado was ordered to resign director and officer positions with any issuer or registrant and is prohibited from becoming or acting in those roles for 10 years. All respondents are barred from becoming or acting as registrants or promoters, and exemptions under Ontario securities law are unavailable to them, for the same period.

Furtado is also prohibited for 10 years from trading securities or derivatives or acquiring securities. An exception permits those transactions through a registered dealer in Canada in RRSPs, RRIFs, RESPs, RDSPs and tax-free savings accounts. The plans' sole legal and beneficial owners must be Furtado, his spouse or his children, and he must give the dealer the order.

The exception is not conditional on first paying all monetary sanctions and costs. The panel found no evidence that his registered savings came from the misconduct. Considering the overall sanctions and the retirement-planning purpose of the exception, it rejected a payment condition that would prevent him from managing those savings.

The $22.2 million disgorgement obligation and costs award are joint and several among all four respondents. The administrative penalties are separately imposed.