1410163 Ontario Inc. o/a Lyon Financial Services and John Moran v. Ontario (CEO of FSRA), 2021 ONFST 4

FINANCIAL SERVICES TRIBUNAL

Citation: 1410163 Ontario Inc. o/a Lyon Financial Services and John Moran v. Ontario (CEO of FSRA), 2021 ONFST 4 FST File No. M871-19 Date: 2021/05/04

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006, c.29 (the “MBLAA”), in particular sections 38 and 39,

AND IN THE MATTER OF the Notice of Proposal to Impose Administrative Penalties dated January 8, 2019, against 1410163 Ontario Inc. operating as Lyon Financial Services (“Lyon Financial”) and John Moran, issued by the Superintendent of Financial Services (the “Superintendent”);

AND IN THE MATTER OF a request for hearing pursuant to subsections 39(2) and 39(5) of the MBLAA;

1410163 ONTARIO INC. operating as LYON FINANCIAL SERVICES and JOHN MORAN

Applicants

and

CHIEF EXECUTIVE OFFICER of the FINANCIAL SERVICES REGULATORY AUTHORITY OF ONTARIO

Respondent

COST ORDER ON CONSENT FOLLOWING MOTION FOR AN ORDER EXCLUDING EVIDENCE GATHERED UNDER SUMMONS

BEFORE:

Ian McSweeney Chair of the Panel and Chair of the Tribunal

APPEARANCES ON THE MOTION NOVEMBER 13, 2020 (Electronically Via Microsoft Teams Video Conferencing):

For the Applicants – Mr. Bob Ebrahimzadeh, legal counsel

For the Respondent – Mr. Troy Harrison, legal counsel; Mr. Michael Scott, legal counsel (Articling students Kate No, Sean Costen, Siddartha Kalita and Adam Levy observing)

I. INTRODUCTION

1This proceeding arises from a Notice of Proposal to Impose Administrative Penalties dated January 8, 2019, issued by the Superintendent of Financial Services (the “AMP NOP”) for 292 alleged contraventions of subsection 2(2) of the Act;

2By agreement of the parties this proceeding remains separate from the proceeding in Tribunal File No. I0872-2019 (the proposed revocation of Mr. Moran’s insurance agent’s licence). The hearing in File No. I0872-2019 will be scheduled to follow release of the Tribunal’s final decision in this proceeding.

3On November 13, 2020 the Tribunal heard a motion (the “Motion”) brought by the Applicants under the Canadian Charter of Rights and Freedoms (the “Charter”)¹. Applicants’ counsel advised that the Motion would challenge the grounds for the June 28, 2018 summons (the “Summons”) issued to Mr. Moran under section 34 of the Act, seeking an order from the Tribunal excluding from admissibility at the hearing, all statements, documents, information and other evidence gathered pursuant to the Summons. The Summons was issued by the Superintendent in conjunction with FSCO’s ongoing investigations leading up to the issuance of the AMP NOP.

4On December 21, 2020 the Tribunal issued its decision in the Motion (2020 ONFST 12).

5As the Tribunal noted in paragraph 95 of the Motion decision, the Respondent’s Motion submissions indicated that, if successful, the Respondent intended to seek costs on the Motion. At the Motion hearing the parties agreed that, if the issue of costs is to be pursued, it could be brought back before this Tribunal by separate motion following release of the Motion decision.

6On May 3, 2021 the Respondent advised the Registrar that the parties had discussed the issue of costs arising from the Motion and had agreed to a costs order of $500 against the Applicants.

II. ORDER

7Based on the foregoing, the Tribunal orders the Applicants to forthwith pay to the Respondent costs in the amount of $500 in respect of the Motion.

Footnotes

1. 1Constitution Act, 1982, enacted as Schedule B to The Canada Act 1982, 1982, c. 11 (U.K.), which came into force on April 17, 1982