Interim Cease And Desist Order Against David Braganza O/A "Financial Link", "Financial Traders", And "Capital Traders Plus"

IN THE MATTER OF THE
LOAN AND TRUST CORPORATIONS ACT
R.S.O. 1990, CHAPTER L.25

AND IN THE MATTER OF
DAVID BRAGANZA O/A “FINANCIAL LINK”,
“FINANCIAL TRADERS”, AND “CAPITAL TRADERS PLUS”

AND IN THE MATTER OF AN APPLICATION FOR
ORDERS OF THE SUPERINTENDENT OF FINANCIAL SERVICES PURSUANT TO SECTIONS 192 AND 206 OF
THE LOAN AND TRUST CORPORATIONS ACT

 

NOTICE OF PROPOSED CEASE AND DESIST ORDER

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INTERIM CEASE AND DESIST ORDER

Section 192 of the Loan and Trust Corporations Act R.S.O. 1990 Chapter L.25, (“the LATCA”) provides that where, in the opinion of the Superintendent, a registered corporation or other person is committing any act or pursuing any course of conduct that does not comply with the LATCA or the regulations, the Superintendent may give notice to the corporation or person of an intention to order him, her or it to cease doing any act or to cease pursuing any course of conduct identified by the Superintendent or to perform such acts as in the opinion of the Superintendent are necessary to remedy the situation;

The Superintendent believes that David Braganza o/a “Financial Link” is not complying with the requirements of section 213 of the LATCA for the following reasons:

A. Neither David Braganza nor “Financial Link” is a registered loan or trust corporation under the LATCA;

B. David Braganza o/a “Financial Link” is conducting, undertaking or transacting in Ontario the business of a loan or trust corporation by borrowing money from the public by receiving deposits for the purpose of lending or investing such money, in contravention of subsection 213(1);

C. David Braganza is the sole proprietor of “Financial Link”.

THE SUPERINTENDENT HEREBY GIVES NOTICE THAT:

She intends to issue an Order fifteen (15) days from the date of this Notice unless you file within that time a request in writing to the Superintendent for a Hearing pursuant to subsection 192(3) of the Loan and Trust Corporations Act.

The terms of the Order that the Superintendent intends to issue are as follows:

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

2. David Braganza shall 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

3. David Braganza or any person or corporation acting on behalf of or as agent of David Braganza or as an agent of “Financial Link”, shall 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 you may within fifteen (15) days of the date of this Notice make a request in writing to the Superintendent for a Hearing pursuant to subsection 192(3) of the Loan and Trust Corporations Act. Your request should be directed to:

Rhonda Booth, Registrar
Financial Services Commission of Ontario
Superintendent of Financial Services
17th Floor
5160 Yonge Street
Toronto ON M2N 6L9

DATED at Toronto this 29th day of July 2005.


Grant Swanson
Executive Director
Licensing and Market Conduct Division
By Delegated Authority of
Cheryl Cottle
Chief Executive Officer
and Superintendent of Financial Services (Acting)

 

TEMPORARY CEASE AND DESIST ORDER

Subsection 192(3) of the LATCA provides that where in the opinion of the Superintendent the interests of the depositors or the public may be prejudiced or adversely affected by any delay in the issuance of a permanent order, the Superintendent may make a temporary order which shall take effect immediately on its making and which shall become permanent on the fifteenth day after its making unless within that time a hearing before the Superintendent is requested.

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 order for the following reasons:

  1. there is clear and cogent evidence that David Braganza’s contravention of the LATCA is ongoing;

  2. it is reasonable to infer from the clear and cogent evidence of David Braganza’s past conduct that informing him that he is contravening the LATCA will not deter him;

  3. it is reasonable to infer from the clear and cogent evidence of David Braganza’s past conduct that he would give depositors little information about their deposits, and he would stonewall their requests for information and for repayment.

THE SUPERINTENDENT HEREBY ORDERS THAT:

  1. David Braganza and “Financial Link” or any person or corporation acting on behalf of or as agent of David Braganza or “Financial Link” shall cease conducting, undertaking or transacting in Ontario the business of a loan or trust corporation by receiving deposits and lending or investing such money;

  2. David Braganza and “Financial Link” shall 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

  3. David Braganza and “Financial Link”, or any person or corporation acting on behalf of or as agent of David Braganza or Financial Link, shall 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 you may within fifteen (15) days of the date of this Order make a request in writing to the Superintendent for a Hearing pursuant to subsection 192(2) of the LATCA. Your request should be directed to:

Financial Services Commission of Ontario
Superintendent of Financial Services
17th Floor
5160 Yonge Street
Toronto ON M2N 6L9

Attention: Rhonda Booth
Registrar

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

AND FURTHER TAKE NOTICE THAT section 214(1)(c) of the LATCA provides that anyone who fails to comply with any order made under the LATCA is guilty of an offence. Section 214(2) provides that the person convicted of an offence under section 214(1)(c) 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.

This order takes effect on the 29th day of July 2005.


Grant Swanson
Executive Director
Licensing and Market Conduct Division
By Delegated Authority of
Cheryl Cottle
Chief Executive Officer
and Superintendent of Financial Services (Acting)

TO: David Braganza o/a “Financial Link”
250 Consumers Road Suite 207
Toronto ON M2J 4V6