Compliance Order to Cease And Desist Unlicensed Activity Against Capstone Financial Solutions and Jeff Watson

Regarding the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 (the "Act"), in particular section 2, 3, 11, and 35.
 
And Regarding Capstone Financial Solutions and Jeff Watson

Compliance Order to Cease And Desist Unlicensed Activity

 
To:

Capstone Financial Solutions (Ontario) Inc.  

And to:

Jeff Watson

On July 23, 2015, the Superintendent of Financial Services ("Superintendent") issued a Notice of Proposal to Impose a Compliance Order to Cease and Desist Unlicensed Activity against Capstone Financial Solutions ("Capstone") and Jeff Watson.

On August 13, 2015, Capstone and Mr. Watson requested a hearing before the Financial Services Tribunal ("Tribunal") in respect of the proposal to impose a compliance order to cease and desist unlicensed activity in accordance with subsections 35(2) and 35(3) of the Act. On March 8, 2016, Capstone and Mr. Watson withdrew their requests for a hearing before the Tribunal.

Section 35(6) of the Act provides that the Superintendent may carry out the proposal to impose a compliance order when no hearing has been requested.
 

Order


It is ordered that Capstone Financial Solutions and Jeff Watson are required to:

  1. Immediately cease soliciting persons or entities to borrow or lend money on the security of real property in Ontario, or holding himself or itself out as doing so;
  2. Immediately cease providing information about a prospective borrower to a prospective mortgage lender or holding himself or itself out as doing so, in respect of real property in Ontario;
  3. Immediately cease negotiating or arranging a mortgage in respect of real property in Ontario on behalf of another person or entity, or attempting or holding himself or herself out as doing so;
  4. Immediately cease accepting any fees or funds in connection with the solicitation, negotiation, or arrangement of a mortgage in respect of real property in Ontario;
  5. Immediately cease using a description that might reasonably be expected to lead to the belief that he or it is a mortgage brokerage in respect of real property in Ontario;
  6. Immediately cease advertising as a mortgage brokerage or as associated with a mortgage brokerage in Ontario;
  7. Immediately cease making any claims or representations in relation to mortgages that are false or misleading.


Take Notice That  pursuant to subsections 48(4) and 49(1) and (2) of the Act, every person who fails to comply with an order made under this Act is guilty of an offence and every individual convicted of an offence under the Act is liable to a fine of not more than $100,000.00 or imprisonment for a term of not more than a year or both a fine and imprisonment.  Every corporation convicted of an offence under the Act is liable to a fine of not more than $200,000.00.

Pursuant to subsection 48(5) of the Act, every director or officer of a corporation that commits an offence under this Act who directed, authorized, assented to, acquiesced in or participated in the commission of the offence, or who failed to take reasonable care to prevent the corporation from committing the offence, is guilty of an offence, whether or not the corporation is prosecuted or convicted.

Subsection 48(6) provides that every partner of a partnership and every individual who is a member of the directing body of an entity, other than a person or partnership, who directed, authorized, assented to, acquiesced in or participated in the commission of an act or omission by the partnership or entity which, if committed by a person, would be an offence under the Act, is guilty of an offence.

Si vous désirez recevoir cet ordre en français, veuillez envoyer votre demande immédiatement à: Adjointe, audiences, Greffe, Commission des services financiers de l'Ontario, 5160 rue Yonge, boîte 85, Toronto ON M2N 6L9.


Dated at Toronto, Ontario, March 9, 2016.

 
Original Signed by

 
Brian Mills
Superintendent of Financial Services