March 18, 2014
Toronto – The Financial Services Commission of Ontario (FSCO) has laid 28 charges against Ralph Iacono under Ontario's Mortgage Brokerages, Lenders and Administrators Act, 2006.
Mr. Iacono faces 14 counts of dealing in mortgages without a brokerage licence and 14 counts of dealing in mortgages without a broker or agent's licence.
The first appearance in this matter will be held on May 1, 2014 at 9:00 a.m. at 70 Centre Avenue in Toronto.
Members of the public should not do any mortgage brokering business with Ralph Iacono or any unlicensed mortgage brokerage affiliated with him.
Mr. Iacono previously held a licence as mortgage broker but that licence was revoked by the Superintendent of Financial Services effective December 8, 2012. Mr. Iacono remains unlicensed to engage in mortgage business in the province of Ontario.
In July 2013, FSCO issued an Interim Compliance Order against Ralph Iacono and Mortgage Lenders Ltd. as well as an Interim Suspension Order against Mortgage Lenders Ltd.
Ontario's Mortgage Brokerages, Lenders and Administrators Act, 2006 holds mortgage brokerages, administrators, brokers and agents to specific educational and professional standards designed to protect consumers. These standards include but are not limited to:
- Disclosing the nature of relationships with borrowers and lenders;
- Informing consumers of all requirements for a mortgage;
- Having errors and omissions insurance with coverage for fraudulent acts; and
- Completion of a mortgage agent education program that has been approved by the Superintendent.
If consumers deal with an unlicensed mortgage brokerage, broker or agent, they cannot be confident that any of these professional standards and safeguards are in place.
Every individual convicted of an offence under the Mortgage Brokerages, Lenders and Administrators Act, 2006 is liable to a fine of up to $100,000.00, imprisonment for up to a year, or both.
FSCO investigates allegations of misconduct, unfair practices and non-compliance with legislation or regulations in its regulated sectors. When warranted, FSCO takes enforcement action.
FSCO is an agency of the Ministry of Finance established under the Financial Services Commission of Ontario Act, 1997. It regulates insurance, pension plans, loan and trust companies, credit unions and caisses populaires, co-operative corporations and mortgage brokerages and administrators in Ontario.