At least 70 families and a Canadian real estate investment fund have allegedly been defrauded by construction companies Global Businesses Inc. and Cobra Development Fund, owned by Federico Cerdas and his brother-in-law Ángel Bernal, respectively. Six years ago, they announced the construction, sale, and delivery of 277 apartments across eight residential projects under the Skyhaus brand in the Benito Juárez and Cuauhtémoc municipalities of Mexico City. To date, only one of these projects, with 20 apartments, has been partially built.
Details of the Alleged Fraud
Victims who pre-purchased the apartments but have not yet received their properties or refunds claim that Cerdas attempted to evade legal action by offering to exchange their purchases for supposedly better apartments without disclosing the uncertain legal status of these properties, which prevents the release of liens or guarantees for completing the works.
Canadian Investment Fund Involvement
ICM Asset Management, a real estate investment fund based in Alberta, Canada, filed a complaint on December 4 with the Attorney General’s Office of Mexico City for an alleged fraud that could amount to 900 million pesos.
The maneuver began in 2018 when Cerdas approached Canadian investors to fund the construction of eight real estate projects with a total of 277 apartments. Two trusts were formalized between 2019 and 2020, establishing that the Canadian fund would provide the capital, while Cerdas and Bernal would handle the purchase of land, obtain permits, and oversee construction and sales.
Three years into the projects, progress was practically nonexistent, and the information reported by Global Businesses and Cobra did not align with the agreed project plans. Investor concerns grew when Cerdas became evasive and eventually stopped responding, prompting an audit from Canada.
Request for Additional Funds
In 2024, Cerdas resurfaced, requesting more capital and citing a lack of resources for the construction projects, despite still managing the works. His claims included references to supposed good relationships with prominent political figures, such as the former interim head of government of Mexico City, Martí Batres, and the current governor, Clara Brugada.
Current Status
Of the eight projects originally scheduled for completion between December 2021 and December 2024, only the one on Rumania Street, in the Portales neighborhood of Benito Juárez, is semi-finished.
Impact on Investment Climate
Manoeuvres like those reported not only undermine citizens’ legitimate expectations to acquire assets but also severely damage the country’s investment climate due to the lack of legal certainty.
Snapshot of Broader Issues
1. Fentanyl Trafficking: Contrary to claims that asylum-seeking immigrants are the primary traffickers, data shows that nine out of ten individuals convicted of trafficking fentanyl are American citizens, with most seizures occurring at legal crossing points.
2. Judicial Confusion: The Court clarified that judges were not instructed to revoke suspensions related to judicial elections but to review them and make decisions.
3. Security Changes in Tabasco: Insecurity and violence led to the resignation of General Victor Hugo Chavez Martinez from the Ministry of Public Security, with Serafín Tadeo Lazcano appointed as the new Secretary of Security.
4. Repatriation Programs: The federal “Mexico Te Abraza” program and state initiatives like “Guerrero Te Respalda” aim to assist migrants deported from the United States, providing support for their reintegration.
This massive real estate fraud case underscores the critical need for legal accountability and transparency to protect investors and maintain confidence in the market.
Source: El Universal
