Disclaimer
An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person’s or entity’s licence on the Licensing Link section of FSRA’s website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.

 

Financial Services Regulatory Authority of Ontario

IN THE MATTER OF REGARDING the Mortgage Brokerage, Lenders and Administrators Act, 2006, S.O. 2006, c. 29, as amended (the “Act”), in particular sections 38 and 39;

AND IN THE MATTER OF John Moran (“Moran”) and 1410163 Ontario Inc. operating as Lyon Financial Services (“Lyon Financial Services”) (together the “Applicants”).

ORDER IMPOSING ADMINISTRATIVE PENALTIES

On January 8, 2019, the Superintendent of Financial Services (“Superintendent”) issued a Notice of Proposal to:

  1. impose administrative penalties in the total amount of $730,000 on Moran for dealing in mortgages for remuneration while not licensed under the Act in 292 transactions, contrary to subsection 2(3) of the Act; and
  2. impose administrative penalties in the total amount of $730,000 on Lyon Financial Services for carrying on the business of dealing in mortgages while not licensed under the Act in 292 transactions, contrary to subsection 2(2) of the Act.

On June 8, 2019, the Financial Services Regulatory Authority of Ontario assumed the regulatory duties of the Financial Services Commission of Ontario, and the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”) assumed the regulatory duties of the Superintendent, under the Act.

A Request for Hearing (Form 1), dated January 21, 2019, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with section 39(5) of the Act respecting the Notice of Proposal.

On June 11, 2021, the Applicants withdrew the Request for Hearing, and, on June 11, 2021, the Tribunal closed its file in respect of this matter. This order is made pursuant to a settlement (the “Settlement”) entered into by the Applicants and the Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer.

ORDER

Administrative penalties in the total amount of $250,000 are hereby imposed on John Moran, in accordance with the Settlement.

Administrative penalties in the total amount of $1,000,000 are hereby imposed on 1410163 Ontario Inc., in accordance with the Settlement.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to the Applicants, with information as to where and how to pay the administrative penalty. Lyon Financial Services must pay the administrative penalties ordered against it no later than thirty (30) days after the date of the invoice. Moran must pay $50,000 no later than thirty (30) days after the date of the invoice. Moran must pay the remainder of the administrative penalties ordered against him within six (6) months after the date of the invoice.

If the Applicants fail to pay the administrative penalty in accordance with the terms of this Order, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of the order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario, June 17, 2021.

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous désirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immédiatement à : contactcentre@fsrao.ca.