June 11, 1999 (Toronto, Ontario) -- The Financial Services Commission of Ontario (FSCO) has laid charges against George Nelson Allen, Robin Moriarty, and Nelbar Financial Corporation, under the Loan and Trust Corporations Act
. The defendants appeared in court for the first time on June 8, 1999.
Allen appeared on his own behalf, as well as on behalf of Moriarty and Nelbar. The case was adjourned until July 6, 1999, to give the defendants time to obtain legal representation. A trial date is scheduled to be set at that time.
Nelbar is charged with operating as a loan corporation without being registered; its president, Allen, and his executive assistant, Moriarty, are charged with acting as agents for an unregistered loan corporation. Nelbar is alleged to have accepted deposits totalling about $10.5 million from approximately 150 depositors.
The Superintendent of Financial Services (Superintendent) launched an investigation into this matter in February, after receiving a complaint from a consumer who had deposited money with Nelbar, but had been unable to get it back. The Superintendent issued an immediate cease and desist order against Nelbar and its president, George Nelson Allen.
In addition to various orders against Nelbar and Allen, made by the Superintendent, and the charges now laid against Nelbar, Allen and Moriarty, FSCO recently arranged an information meeting for depositors.
"FSCO has taken all possible steps to protect the depositors," said John Harper, Director of the Credit Unions and Co-operatives Branch, at the Financial Services Commission of Ontario. "Consumer protection is our first priority."
Media contact: Kathleen Harford, (416) 590-7230