July 30, 2013
Toronto –The Superintendent of Financial Services for the Financial Services Commission of Ontario (FSCO) has issued an Interim Compliance Order against Ralph Iacono and Mortgage Lenders Ltd. and an Interim Suspension Order against Mortgage Lenders Ltd. ordering them to immediately cease carrying on mortgage brokering business in Ontario and holding themselves out as doing so.
The Superintendent has grounds to believe that Mr. Iacono is dealing in mortgages without a licence on behalf of Mortgage Lenders Ltd. It is alleged that the clients of Mortgage Lenders Ltd. are at risk because Mr. Iacono’s dealings with them contravenes the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the Act). The Act requires Ontario’s mortgage brokerages, administrators, brokers and agents to be licenced and holds them to specific standards. In addition, it is alleged that Mr. Iacono’s ongoing mortgage activities are in defiance of an Order of the Superintendent dated December 5, 2012, which revoked Mr. Iacono’s mortgage broker licence.
The Act allows the Superintendent to make an interim order when the interests of the public may be adversely affected by any delay in making a compliance or revocation order.
The interim orders against Mortgage Lenders Ltd. and Mr. Iacono will expire in 21 days if the Superintendent does not make a notice of proposal to make a permanent order in either matter.
Every individual convicted of an offence under the Act, including not complying with an interim order, is liable to a fine of up to $100,000.00, imprisonment for up to a year, or both. Every corporation convicted of an offence under the Act is liable to a fine up to $200,000.00.
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.