TORONTO, July 30, 2013 /CNW/ - The Superintendent of Financial Services
for the Financial Services Commission of Ontario (FSCO) has issued an
Interim Compliance Order against Ralph Iacono and Mortgage Lenders Ltd.
and an Interim Suspension Order against Mortgage Lenders Ltd. ordering
them to immediately cease carrying on mortgage brokering business in
Ontario and holding themselves out as doing so.
The Superintendent has grounds to believe that Mr. Iacono is dealing in
mortgages without a licence on behalf of Mortgage Lenders Ltd. It is
alleged that the clients of Mortgage Lenders Ltd. are at risk because
Mr. Iacono's dealings with them contravenes the Mortgage Brokerages,
Lenders and Administrators Act, 2006 (the Act). The Act requires
Ontario's mortgage brokerages, administrators, brokers and agents to be
licenced and holds them to specific standards. In addition, it is
alleged that Mr. Iacono's ongoing mortgage activities are in defiance
of an Order of the Superintendent dated December 5, 2012, which revoked
Mr. Iacono's mortgage broker licence.
The Act allows the Superintendent to make an interim order when the
interests of the public may be adversely affected by any delay in
making a compliance or revocation order.
The interim orders against Mortgage Lenders Ltd. and Mr. Iacono will
expire in 21 days if the Superintendent does not make a notice of
proposal to make a permanent order in either matter.
Every individual convicted of an offence under the Act, including not
complying with an interim order, is liable to a fine of up to
$100,000.00, imprisonment for up to a year, or both. Every corporation
convicted of an offence under the Act is liable to a fine up to
FSCO investigates allegations of misconduct, unfair practices and
non-compliance with legislation or regulations in its regulated
sectors. When warranted, FSCO takes enforcement action.
FSCO is an agency of the Ministry of Finance established under the
Financial Services Commission of Ontario Act, 1997. It regulates
insurance, pension plans, loan and trust companies, credit unions and
caisses populaires, co-operative corporations and mortgage brokerages
and administrators in Ontario.
SOURCE: Financial Services Commission of Ontario
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