2210968 Ontario Inc. operating as GCA Group v. Ontario (Superintendent Financial Services), 2018 ONFST 23

FINANCIAL SERVICES TRIBUNAL

Citation: 2210968 Ontario Inc. operating as GCA Group v. Ontario (Superintendent Financial Services), 2018 ONFST 23 Decision No.: M0759-2017-1 Date: 2018/10/24

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act 2006, S.O. 2006, c. 29, (the "Act") in particular sections 38 and 39;

AND IN THE MATTER OF the Notice of Proposal to Impose Administrative Penalties dated October 12, 2017 against 2210968 Ontario Inc. operating as GCA Group, issued by the Superintendent of Financial Services;

AND IN THE MATTER OF a Hearing in accordance with subsection 39(5) of the Act.

B E T W E E N:

2210968 ONTARIO INC. operating as GCA GROUP

APPLICANT

and

SUPERINTENDENT OF FINANCIAL SERVICES

RESPONDENT

BEFORE:

Bethune Whiston Chair of the Panel and Vice-Chair of the Tribunal

WRITTEN SUBMISSIONS:

For the Applicant – no submissions received from the Applicant or counsel, Mr. Kien Chong Sammy Lee

For the Superintendent of Financial Services – no submissions received from Mr. Michael Spagnolo, Counsel. However, an affidavit (the "Affidavit") was filed with the Tribunal on October 3, 2018, by Ms. Rosalie-Anne Kettle, a legal secretary employed by the Ministry of the Attorney General for the Province of Ontario, seconded to the Legal Services Branch of the Financial Services Commission of Ontario ("FSCO").

REASONS FOR DECISION

I. INTRODUCTION

1On October 13, 2017, the Superintendent sent to Mr. Ha of 2210968 Ontario Inc. operating as GCA Group ("GCA"), a Notice of Proposal to Impose Administrative Penalties (the "Notice"). In the Notice, the Superintendent proposed to impose on GCA administrative penalties in the amount of $15,000 each for 20 contraventions of the Act, namely dealing in mortgages without a licence, including soliciting another person or entity to lend money on the security of real property, contrary to section 2(3) of the Act.

2According to the Notice, GCA is a corporation incorporated under the laws of Ontario. Dominic Ha is the sole director and officer, and majority owner in GCA. The corporation principally engaged in the financial services business. GCA is not licensed under the Act.

3Also according to the Notice, Dominic Ha was at that time licensed as a mortgage agent under the Act, licence # M11002314, however his licence was suspended pending the resolution of a Tribunal hearing into a Notice of Proposal to Revoke Licence.

4The Notice indicated that FSCO had received complaints about Mr. Ha and GCA. A significant amount of detail was provided respecting these complaints.

5A Request for Hearing (the "Request") was filed by GCA with the Tribunal on October 27, 2017. Three Pre-Hearing Conferences were held in furtherance of the Request, one on February 9, 2018 (the "February PHC"), one on May 3, 2018 (the "May PHC") and one on August 28, 2018 (the "August PHC").

II. Notice of Intention to dismiss

6At the May PHC, the Applicant was ordered to provide disclosure to the Superintendent by May 31, 2018.

7At the August PHC, Superintendent's counsel confirmed disclosure from the Applicant as ordered had still not been received.

8At the August PHC, Applicant's counsel confirmed the Applicant will not be taking any further steps with respect to this proceeding and Applicant's counsel is receiving no further instructions from his client regarding this proceeding.

9The Tribunal resolved that GCA had initiated this proceeding and had taken no step for an undue period, therefore the Tribunal issued a Notice of Intention to Dismiss dated August 30, 2018.

10The Notice of Intention to Dismiss indicated that GCA had the right to (a) make written submissions to the Tribunal on the issue of whether the Tribunal should dismiss this proceeding without a hearing, or (b) show reasonable cause for failure to make submissions, provided (a) or (b) were received within 30 days of the giving of the notice.

11The Notice of Intention to Dismiss also stated that (a) after considering the submissions, if any, the Tribunal may dismiss the proceeding without further hearing, and (b) if the proceeding is dismissed, the Superintendent may carry out his proposal to impose the administrative penalties described in the Notice of Proposal.

III. decision and reasons

12GCA initiated a proceeding with the Tribunal and did not take a step in the proceeding for an undue period.

13GCA had an opportunity to make written submissions as to why the proceeding should not be dismissed or show reasonable cause for failure to take any steps in the proceeding for an undue period.

14GCA made no submissions to the Tribunal and took no other action within the 30 day period.

15The Superintendent filed the Affidavit noted above, which confirmed that the information required to be produced by GCA had not been received by the Superintendent by electronic means, regular mail , registered mail or courier, as of October 2, 2018.

16Rule 34.01 of the Tribunal's Rules provides the Tribunal with the authority to dismiss proceedings for delay where a party has taken no step in a proceeding for an undue period. The Tribunal has previously dismissed matters for delay under Rule 34.01 of the Rules, or a prior version of that Rule, where an Applicant has not taken steps in a proceeding or has shown intent not to take a step required to be taken in a proceeding (refer to Anthony v. Ontario (Superintendent Financial Services), 2018 ONFST 10 and Lexxco Investment Services Corporation and Lewis v. Ontario (Superintendent Financial Services), 2017 ONFST 6).

IV. ORDER

17For the foregoing reasons, the Tribunal orders the Applicant's Request for Hearing is dismissed. The Superintendent is ordered to carry out the Notice of Proposal issued to GCA, namely to impose on GCA administrative penalties in the amount of $15,000 each for 20 contraventions of the Act.