Peter Bariamis and Interamerican Financial Inc.

Interim Cease and Desist Orders Against Peter Bariamis and Interamerican Financial Inc. Carrying on Business as York Commonwealth Direct

REGARDING the Insurance Act, R.S.O. 1990, Chapter I.8, as amended, in particular section 441 (the “Act”)

AND REGARDING a Proposed Permanent Cease and Desist Order against Peter Bariamis and Interamerican Financial Inc. carrying on business as York Commonwealth Direct

AND REGARDING an Interim Cease and Desist against Peter Bariamis and Interamerican Financial Inc., carrying on business as York Commonwealth Direct

NOTICE OF PROPOSED PERMANENT CEASE AND DESIST ORDER
and
INTERIM CEASE AND DESIST ORDER

The Superintendent of Financial Services (“Superintendent”) is of the opinion that Peter Bariamis (“Bariamis”) and Interamerican Financial Inc., carrying on business as York Commonwealth Direct (“York”) have committed, and are committing, unfair or deceptive acts or practices in the business of insurance. The particulars are set out in the Report of the Superintendent appended as Appendix “A” to this Notice.

WITHIN 15 DAYS after receiving this notice, you may request in writing that the Financial Services Tribunal hold a hearing on whether or not a permanent cease and desist order should be issued.

IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a permanent order in accordance with this notice, which shall take effect on the date set out in the order.

A request for a hearing should be directed, in writing, to:

Financial Services Tribunal
5160 Yonge Street
Toronto, Ontario
M2N 6L9

Attention: Rhonda Booth, Registrar Fax: (416) 226-7750

NOTICE

The Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by a delay in the issuance of a permanent order for the following reasons:

  1. Bariamis is not registered or licenced to act as either an insurance broker or an insurance agent in Ontario;

  2. Briamis is the sole officer and director of York;

  3. York is an Ontario corporation that is not a licenced insurer or agent in Ontario and therefore not legally entitled to carry on the business of insurance in Ontario;

  4. Bariamis has created promotional material designed to facilitate the sale of insurance policies on behalf of York;

  5. Bariamis has sold contracts of insurance, on behalf of York, to at least 393 customers located in Ontario. The majority of these are automobile insurance policies and the holders of those policies have been placed at risk of being exposed to uninsured losses and liabilities.

In accordance with subsection 441(4) of the Act, the Superintendent, without prior notice, may make an interim order which shall take effect immediately.

INTERIM CEASE AND DESIST ORDER

Effective this date, pursuant to subsection 441(4) of the Act, the Superintendent orders that:

1. Peter Bariamis and any agents or representatives thereof:

A. Immediately cease acting as insurance agents;

B. Immediately cease soliciting, selling, attempting to sell, or negotiate, contracts of insurance;

C. Immediately cease collecting or receiving money or anything else of value from any insurance agent, insurance broker and/or any member of the public in exchange for securing, placing, attempting to secure, attempting to place, and/or negotiating insurance coverage of any kind;

D. Immediately cease in engaging in any form of advertisement or solicitation for securing, placing or negotiating the sale or renewal of any contract of insurance; and,

E. Immediately reimburse all premiums or monies paid by Ontario customers who purchased insurance from Peter Bariamis and/or Interamerican Financial Inc., carrying on business as York Commonwealth Direct.

2. Interamerican Financial Inc., carrying on business as York Commonwealth Direct, and any officers, directors, employees, agents or representatives thereof;

A. Immediately cease carrying on business as an insurer, and in particular cease undertaking or offering to undertake, directly or indirectly, contracts of insurance in any form in Ontario;

B. Immediately cease withdrawing or collecting any funds, directly or indirectly, from any person in respect of any form of insurance;

C. Immediately notify, in writing, all persons who have purchased or are purchasing any form of insurance that Interamerican Financial Inc., carrying on business as York Commonwealth Direct issued or purported to have issued and provide such persons with a copy of this cease and desist order, and provide copies of every notification sent to such person to the Superintendent forthwith;

D. Immediately cease advertising or holding themselves out, in any form, as being able to undertake, or in any other way provide, insurance; and,

E. Immediately reimburse all premiums or monies paid by Ontario customers who purchased insurance from Peter Bariamis and/or Interamerican Financial Inc., carrying on business as York Commonwealth Direct.

TAKE NOTICE THAT the above Interim Cease and Desist Order shall become permanent unless within 15 days a written request for a hearing before the Financial Services Tribunal is made.

AND FURTHER TAKE NOTICE THAT if a hearing is requested, the Superintendent may extend the interim cease and desist order until the hearing before the Financial Services Tribunal is concluded.

AND FURTHER TAKE NOTICE THAT section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

AND FURTHER TAKE NOTICE THAT section 447(4) of the Act provides that every director, officer, and chief agent of a corporation who caused, authorised, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

ISSUED AT the City of Toronto, June 6, 2005


Bryan P. Davies
Superintendent of Financial Services

TO:

Peter Bariamis
769 Pape Ave
Toronto, Ontario
M4K 3T2

AND TO:

Interamerican Financial Inc., carrying on business
as York Commonwealth Direct
769 Pape Ave
Toronto, Ontario
M4K 3T2