Notice of Proposed Cease and Desist Order and Temporary Cease and Desist Order Against Daniel P. Reeve, Millionaire Mortgage Inc., and DPR Financial Inc.

REGARDING the  Loan and Trust Corporations Act, R.S.O.1990, c.L.25, as amended (the "Act"), in particular, sections192(1), 192(3), 206, 208, 213,214

AND REGARDING Daniel P.Reeve, Millionaire Mortgage Inc., and DPR Financial Inc.

 NOTICE OF PROPOSED CEASE AND DESIST ORDER

and

TEMPORARY CEASE AND DESIST ORDER

The Superintendent of Financial Services (the "Superintendent") is of the opinion that Daniel P.Reeve, Millionaire Mortgage Inc. ("Millionaire Mortgage"), and DPR Financial Inc. ("DPR Financial") have contravened section 213 of the Act by conducting, undertaking or transacting in Ontario the business of a loan or trust corporation while unregistered, by borrowing money from the public by receiving deposits for the purpose of lending and investing such money.

The particulars are set out in a statement made under oath by Harry McClenaghan, an Investigator with the Financial Services Commission of Ontario ("FSCO"), that will be served with this Notice.

TAKE NOTICE THAT pursuant to section 192(1) of the Act, the Superintendent intends to order Daniel P.Reeve, Millionaire Mortgage and DPR Financial, and any agents or representatives thereof, to:

A. cease conducting, undertaking or transacting in Ontario the business of a loan or trust corporation, by receiving deposits and lending or investing such money;

B. deliver up to a representative of the Superintendent copies of all business records including but not limited to, lists of the names of all investors and depositors, the amounts received from each investor or depositor, the bank accounts where all the deposits are invested, and all such other records and documents as are requested; and

C. take all action, or cause all such action to be taken, to preserve all existing funds, deposits, securities or assets and to regain control of any funds, deposits, securities or assets from any person, and to hold all such funds, deposits, securities or assets in trust for the Superintendent pending further order of the Superintendent, the Financial Services Tribunal, or the Superior Court of Justice.

NOTE

WITHIN 15 DAYS after receiving this notice, you may request in writing that the Superintendent hold a hearing on whether or not a Cease and Desist Order should be issued.

TAKE NOTICE THAT the hearing before the Superintendent will proceed in accordance with the Rules of Practice and Procedure of the Superintendent under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S. 22.  The Rules of Practice and Procedure are available at the website of the Financial Services Commission of Ontario:

www.fsco.gov.on.ca/english/hearings/superintendent/rules.asp.

Alternatively, a copy can be obtained by telephoning the Registrar at 416.226.7294, or toll free at 1.800.668.0128 ext. 7294.

IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a Cease and Desist Order in accordance with this Notice, which shall take effect on the date set out in the Cease and Desist Order.

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

Financial Services Commission of Ontario
Superintendent of Financial Services,
14thFloor
5160 Yonge Street
Toronto ON  M2N 6L9
Attention: Registrar                                               
Fax No.: 416.226.7750

DATED at Toronto, Ontario May 13, 2009.  

 

Robert E. Christie

Superintendent of Financial Services

TEMPORARY CEASE AND DESIST ORDER

Pursuant to section 192(3) of the Act, if the Superintendent is of the opinion that the interests of the depositors or the public may be prejudiced or adversely affected by any delay in the issuance of a permanent Cease and Desist Order, the Superintendent may make a Temporary Cease and Desist Order which shall take effect immediately and which shall become permanent unless within 15 days of receipt of the Temporary Cease and Desist Order the named persons request a hearing before the Superintendent.

The Superintendent is of the opinion that the interests of the depositors or the public may be prejudiced or adversely affected by any delay in the issuance of a permanent Cease and Desist Order for the following reasons:

  1. there is clear and cogent evidence that Daniel P.Reeve, Millionaire Mortgage and DPR Financial contravened the Act from on or about June 1, 2008 until mid-April 2009, in order to unlawfully obtain deposits from the public in the aggregate amount of $950,000;

  2. Daniel Reeve’s failure to respond to a communication from an Investigator of the Financial Services Commission of Ontario, together with the clear and cogent evidence that he contravened the Act, shows that he is ungovernable;

  3. the interests of the depositors may be prejudiced or adversely affected if there is any delay in requiring Daniel P. Reeve, Millionaire Mortgage and DPR Financial to deliver up to a representative of the Superintendent copies of all business records including but not limited to, lists of the names of all investors and depositors, the amounts received from each investor or depositor, the bank accounts where all the deposits are invested, and all such other records and documents as are requested;

  4. the interests of the depositors may be prejudiced or adversely affected if there is any delay in ordering Daniel P.Reeve, Millionaire Mortgage and DPR Financial to take all action, or cause all such action to be taken, to preserve all existing funds, deposits, securities or assets and to regain control of any funds, deposits, securities or assets from any person, and to hold all such funds, deposits, securities or assets in trust for the Superintendent pending further order of the Superintendent, the Financial Services Tribunal, or the Superior Court of Justice.

Effective this date, pursuant to section 192(3) of the Act, the Superintendent orders that Daniel P.Reeve, Millionaire Mortgage and DPR Financial:

A. immediately cease conducting, undertaking or transacting in Ontario the business of a loan or trust corporation, by receiving deposits and lending or investing such money;

B. immediately deliver up to a representative of the Superintendent copies of all business records including, but not limited to, lists of the names of all investors, the amounts received from each investor, the bank accounts where all the deposits are invested, and all such other records and documents as are requested; and

C. immediately take all action, or cause all such action to be taken, to preserve all existing funds, deposits, securities or assets and to regain control of any funds, deposits, securities or assets from any person, and to hold all such funds, deposits, securities or assets in trust for the Superintendent pending further order of the Superintendent, the Financial Services Tribunal, or the Superior Court of Justice.

TAKE NOTICE THAT the above Temporary Cease and Desist Order shall become permanent on the 15th day after you receive it, unless within 15 days a written request for a hearing before the Superintendent is made.

AND TAKE NOTICE THAT if you request a hearing before the Superintendent, the Superintendent may extend the Temporary Cease and Desist Order until the hearing is concluded.

DATED at Toronto, Ontario May 13, 2009.

 

Robert E.Christie
Superintendent of Financial Services