Medallion McKnight Investment Class Action

McGuigan Nelson has commenced a lawsuit on behalf of a subset of investors who suffered a loss in the Medallion McKnight investment project. This page contains information about the class action, frequently asked questions, and updates on how the class action is proceeding.

Check back frequently for updates.

UPDATE – the Representative Plaintiff has just received an Order requiring Certified’s prior counsel to produce certain documents pertaining to instruction received regarding the investments of the Class.  This is a significant Order.


1. What is this class action about?

In 2006 – 2010, investors provided funds by way of Loan Agreements to Certified Financial Savings & Mortgage Corp. (“Certified“) to fund the development and construction of a commercial base and two residential towers on property located on Edmonton Trail, in Calgary, Alberta. Investors were supposed to have their investment protected by a mortgage on the property, placed by Certified, and in a second priority position on title to the property. 

Multiple investors did not, in fact, have their investment protected by a mortgage. When this error was discovered, in or around October 2010, Certified took steps to register another mortgage on title to the property to protect these investors’ interests. However, at this point, intervening mortgages had been put on title and these investors were in a last priority position, ahead of multiple other mortgages.

The property subsequently went into foreclosure and was sold in May 2012. The court made a determination that the investors who were not protected by the first mortgage, but instead only protected by the second mortgage, were subordinate to all other mortgages. There were insufficient funds to pay out these investors, and their investment was lost as a result.

2. Who is a class member?

Class Members are those who invested in the “Medallion McKnight” project by way of loaned funds with Certified, and whose investments were only secured by the second mortgage (and fourth in priority) placed by Certified on title to the property, and who received no payment out of the foreclosure process.

3. I invested in the Medallion McKnight project but I received a partial payment out of the foreclosure process in 2012. Am I a class member?

If you only had a single loan and a partial payment of your investment out of the foreclosure process in 2012, you are not a class member, as your interest was secured by the first mortgage placed by Certified. Only those investors who received no payment out of the foreclosure process are class members, as they were in a fourth priority position.

Some investors may be in the situation where they had multiple loans at different dates, where some of their loans were covered by the first mortgage (and were partially paid out) while other loans were secured by the second mortgage, and were not paid out. In this case, if you were an investor that had some of your loans partially paid out upon foreclosure, but other loans were never paid out, then you are a class member, but your potential recovery will only be based on the amount invested in the loan that was not paid out. 

4. What are the allegations?

We have alleged that Certified and their legal counsel, Phillip Fiess, failed to secure class members’ investment by ensuring their investment was secured by the first mortgage placed on title by Certified. As a result, when the property went into foreclosure, the class members were unable to share in the proceeds of sale with the investors who were protected.

The allegations are set out in greater detail in the Amended Statement of Claim, found to the immediate right of this page.

5. I am a class member. Now what?

As of February 9th, 2016, we were certified as a class proceeding by the Court of Queen’s Bench of Alberta. This means that the court has determined that a class proceeding is the best way to hear this matter, where all the investors’ claims can be addressed in a single lawsuit. It is not a decision on the merits, but it is an important step that all class proceedings must go through to show that there are sufficient common issues that all the claims can be tried once.

If you are a class member as previously explained, then you will be automatically included in the lawsuit unless you specifically choose to Opt-Out. However, we request that investors send us an Investor Participation Form so we have your current contact information and can reach you for updates. You are not required to give us an Investor Participation Form to be a part of the class proceeding; this is simply to assist us in keeping records of investors. A Notice of Certification will be sent to investors at their last known e-mail address. A copy of the Notice of Certification and the Investor Participation Form can be found to the immediate right of this page.

Please provide us with your investor participation forms via mail, fax, or e-mail at

6. How will I be notified?

Class members will be notified in accordance with the Certification Order, which can be found on this page. The Certification Order requires us to send a Notice of Certification, which will be sent electronically and via mail to the class members’ last known e-mail address and mail address. The Notice of Certification can also be downloaded at the immediate right of this page.

Again, investors are automatically included unless they send us an Opt-Out form. We are nevertheless asking investors to send us an Investor Participation Form if they intend to be part of the class proceeding, as this will help us keep our information current and get in contact with you.

If you have not been contacted via mail or e-mail we encourage you to send us an e-mail at, as your contact information we have on file may not be up to date.

7. I have questions. Who should I contact?

We cannot respond to individual e-mails or phone calls due to the amount of time and number of investors. If there are questions, we ask that you send them via e-mail to Periodically we will update our website to respond to the questions that investors ask us.

We encourage investors to carefully look through the documents posted on this page as well as the FAQ, as the answers to your questions are likely contained within those documents.

8. I do not want to be part of the class action. What do I do?

You have until February 28th, 2016 to opt out of the class proceeding. If you do not opt out, you are automatically included. If you do opt out, you are no longer a member of the class proceeding. You may bring your own separate lawsuit. However, if there is a settlement or we are successful at trial, you will not share in the settlement proceeds. The Opt-Out form is found to the immediate right of this page.

9. What is the next step in the lawsuit?

Now that we have been certified by the Court of Queen’s Bench, we will be moving forward towards trial. This will involve questioning witnesses, exchanging all relevant records, and setting trial dates.