Former Mortgage Broker Fined, Received 2-year Probation Order

TORONTO - (July 6, 1998) - On February 6, 1998, a former Toronto mortgage broker was ordered to pay a fine of $2,000 and was placed on probation for two years. Wincy Utomi, who operated the ABC Mortgages & Investments Company, was charged and convicted with refusing to furnish information for the purpose of allowing the Registrar of Mortgage Brokers to conduct an inspection. The sentence was imposed by Justice of the Peace Paul Chandhoke.

The probation order requires Mr. Utomi to submit audited financial statements for the period of December 31, 1995 to April 24, 1996, along with a reconciliation for the trust account or any bank account related to his mortgage broker business.

The investigation of Mr. Utomi began when the Registrar received information alleging that Mr. Utomi might not be complying with the requirements of the Mortgage Brokers Act. Inspection notices were issued. The court rejected Utomi's contention that he had not received any of the inspection notices and further found that the voluntary termination of his registration in the face of these notices did not exempt him from complying with the request.

Justice of the Peace Chandhoke stressed that "the message must be sent out to the community at large indicating that if anybody breaches this kind of statute (that) the penalty should be there to deter you and also the others".

The Registrar, William Vasiliou, said this was an important case because the Registrar's inspection powers under the Mortgage Brokers Act had, until now, not been challenged in court. The ability to inspect has and continues to be a crucial function in the administration of this public welfare statute.

Contact: William Vasiliou
Registrar of Mortgage Brokers
(416) 326-9045