Block letters spelling fraud, with magnifying glass

A Richmond Hill, Ont. man is facing a series of charges in connection with a couple of syndicated mortgage firms, Rockfort Mortgage Investment Corp. and Greenview Capital Mortgage Investment Corp., the Ontario Securities Commission (OSC) announced on Monday.

David Singh has been charged with one count each of fraud, trading without registration, and trading with a prospectus.

The charges were brought following an investigation by the OSC’s Joint Serious Offences Team (JSOT), which is an enforcement partnership between the OSC, the Royal Canadian Mounted Police Financial Crime program, and the Ontario Provincial Police Anti-Rackets Branch.

The allegations “relate to the sale of more than $5.5 million worth of securities” in Rockfort and Greenview between Nov. 1, 2014 and Jan. 31, 2018, the OSC says in a news release.

“A significant percentage of the money obtained by this alleged fraud was used by Singh for purposes unrelated to these businesses and was to the detriment of investors,” the OSC further alleges.

The allegations have not been proven. Singh’s next court appearance in the case is slated for July 6 at Old City Hall Provincial Court in Toronto.

Last year, the Ontario government announced the transfer of oversight responsibility for the syndicated mortgage industry to the OSC amid concerns about lax oversight in the sector.

Ontario budget pledges financial sector reform

Earlier this year, the Canadian Securities Administrators (CSA) proposed rule changes designed to harmonize the regulatory framework for syndicated mortgages in Canada, which would eliminate certain exemptions and enhance disclosure requirements. Those proposals are out for comment until June 6.

CSA to step up rules on syndicated mortgages