Regarding the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 (the "Act"), in particular section 35.
And Regarding Capstone Financial Solutions and Jeff Watson
Extension Of Interim Compliance Order To Cease And Desist Unlicensed Activity
Capstone Financial Solutions
On July 23, 2015, the Superintendent of Financial Services ("Superintendent") issued an Interim Compliance Order to Cease and Desist Unlicensed Activity against Capstone Financial Solutions ("Capstone") and Jeff Watson pursuant to subsection 35(7) of the Act. The Interim Compliance Order required Capstone and Mr. Watson to:
- 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;
- 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;
- 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;
- 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;
- 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;
- Immediately cease advertising as a mortgage brokerage or as associated with a mortgage brokerage in Ontario;
- Immediately cease making any claims or representations in relation to mortgages that are false or misleading.
On the same day, the Superintendent issued a Notice of Proposal to Impose a Compliance Order to Cease and Desist Unlicensed Activity against Capstone and Mr. Watson.
The Interim Order took effect immediately and remains in effect until the expiry of the period for requesting a hearing in respect of the Superintendent’s Notice of Proposal.
On August 13, 2015, Capstone and Mr. Watson filed a Request for Hearing with the Registrar of the Financial Services Tribunal ("Tribunal") in respect of the Superintendent’s Notice of Proposal.
Pursuant to subsection 35(10) of the Act, as Capstone and Mr. Watson have requested a hearing before the Tribunal, the Superintendent may extend the Interim Order until the proposal is finally determined.
For the reasons set out in the Interim Order, the Superintendent continues to be of the opinion that the interests of the public may be adversely affected by any delay in the imposition of a permanent compliance order to cease and desist unlicensed activity against Capstone and Mr. Watson.
Interim Compliance Order To Cease And Desist Unlicensed Activity
It is ordered that that pursuant to subsection 35(10) of the Act, the Interim Compliance Order to Cease and Desist Unlicensed Activity dated July 23, 2015 against Capstone Financial Solutions and Jeff Watson is extended until the proposal in the Notice of Proposal dated July 23, 2015 is finally determined.
And 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, August 13, 2015.
Original Signed by "Brian Mills"
Superintendent of Financial Services