The Superintendent of Financial Services for the Financial Services Commission of Ontario (FSCO) has issued an interim compliance order against Ralph Iacono and Mississauga, Ont.-based Mortgage Lenders Ltd., and an interim suspension order against the firm, 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 Iacono is dealing in mortgages without a licence on behalf of Mortgage Lenders. It is alleged that the clients of the company are at risk because Iacono’s dealings with them contravenes the Mortgage Brokerages, Lenders and Administrators Act, 2006.
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 Iacono’s ongoing mortgage activities are in defiance of an order the Superintendent imposed on Dec. 5, 2012, which revoked Iacono’s mortgage broker licence.
The interim orders against Mortgage Lenders and 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, 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.