Company News

Total losses undetermined

By Canadian Press |

Source: The Canadian Press

Equitable Group Inc. (TSX:ETC) says its has become “aware” of a suspected fraud involving four loans with a total outstanding balance of $14 million.

However, the Toronto-based niche mortgage lender said Tuesday that the total loss to the company, if any, cannot be determined at this time.

“The matter is presently being investigated with a view to minimizing any potential losses to the company,” Equitable said in a statement.

The company said it was reviewing its legal options for claims against several parties to the subject loan transactions and also noted that it has insurance intended to cover such losses.

Equitable Group Inc., through its wholly owned subsidiary, The Equitable Trust Company, serves single family as well as small and large commercial borrowers and is a provider of guaranteed investment certificates.

Stock in Equitable Group closed up 99 cents or four per cent at $25.39 Tuesday on the Toronto Stock Exchange.