An Ottawa family of eight was given a $10,000 refund cheque on Tuesday evening by a rent-to-own company that's facing more than $2.5 million in lawsuits from investors who claim they've been scammed.
Chantal Scott and James Cronier signed a contract with the company, called Golden Oaks Rent 2 Own Canada, for a three-bedroom, 2,000-square-foot townhouse in the east Ottawa suburb of Orleans.
The couple had been living in a small public housing unit with their six children and said they could not afford a larger home. They heard the rent-to-own company's radio advertisement and thought the idea was perfect for them.
The agreement, in the eyes of the couple, stated you pay a $10,000 down payment then $1,800 per month in rent, which would ultimately lead to purchasing the home in about five years.
The contract also stated the couple would receive the down payment back as a credit after they had officially purchased the home.
"We figured it was a great opportunity to be able to own a home that's bigger, and more suitable for a family of eight," said Scott. "So they showed us a whole bunch of houses."
3-day deadline to move, family says
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The family moved into their new home on June 21, but red flags immediately popped up.
A man, whom the family could not identify, called them the day they moved in to ask for 12 cheques. Scott said the man claimed he needed the money to take a mortgage out on the home "immediately."
Scott said she then called the company's owner, Jean-Claude Lacasse, who also owns the parent company Golden Oaks Enterprises. After getting no answer, she called a lawyer who informed her Lacasse had multiple lawsuits filed against him.
The couple said they then got a call from an investor named Christopher Steeves. A statement of claim reveals Steeves is suing Golden Oaks Enterprises for $505,000 in damages. Scott said Steeves told them they had to move out.
"We were told to pack up and ship out," she said. "Thank god we contacted Ottawa [Community] Housing because our place was rented," adding the family is now unpacking back at its old housing unit.
"We would have been on the streets. We would have been a family of eight living nowhere because of this."
Lawsuits total more than $2M in damages
CBC News has learned 18 people have filed 10 lawsuits against Lacasse in the past three months, adding up to more than $2 million.
Another investor, Umair Chaudhari, said he put $100,000 into Golden Oaks Enterprises and was promised a more than 30-per-cent return after three months, plus his principal back.
But he said he's still owed the money and plans on suing.
Scott, Cronier and their six children can't afford a lawyer to sue Lacasse, they say, so they contacted Ottawa police, who could not confirm whether an investigation is underway.
Owner promised refund Tuesday
Soon after the family spoke to CBC, Lacasse called Scott, claiming he would refund all their money by Tuesday. And on Tuesday evening, Scott received a $10,000 cheque from Lacasse.
But the family continues to live out of boxes and suitcases.
"We had to take time off work," said Scott. "We're losing income for the week. This is hard on my kids. We transferred their schools.
"We said all our goodbyes to the area we were living in, and to go back, it's kind of embarrassing … I explained to [police] I don't have weeks and I don't have months and I said somebody needs to put a stop to this…. It's every person's dream, and it becomes a nightmare."
Lacasse did not reply to several requests for an interview, and did not answer the door when CBC News went to his home.
Company restructuring debts, according to statement
He issued an emailed statement Tuesday afternoon.
"At the current time, the company is restructuring its debts with investors and will be in contact with them as well as all tenant-buyers who presently occupy units. The company has assets and at this point, it has not been determined that anyone will lose money," the statement reads.
"The company [has]
listed several properties to meet its obligations. It is very unfortunate that Chantal Scott was asked to vacate the premises by someone who had no authority to speak on behalf of the company as there was a signed and valid occupancy agreement in place.
"Mr. Lacasse has been sick but the moment he heard about Chantal he called to tell her he would be returning her Option Fee within the next few days. We realize that this is a stressful time for all involved and will provide further information as soon as it is available."