Home Capital to pay $29.5M to settle OSC, class-action matters
Agreement follows allegations of misleading disclosure against the alternative mortgage lender
Home Capital Group says it has reached an agreement to pay $29.5 million to settle Ontario Securities Commission and class-action lawsuit matters related to allegations of misleading disclosure.
The embattled alternative mortgage lender will pay $10 million to settle with the OSC and reimburse the provincial securities watchdog costs of $500,000.
- Home Capital report casts doubt on its future as a going concern
- Home Capital Group says its deposits continue to fall
Under terms of the proposed deal, Home Capital founder Gerald Soloway will pay an administrative penalty of $1 million and will be barred from acting as a director or officer of a public company for four years.
Former CFO Robert Morton and former CEO Martin Reid will each pay an administrative penalty of $500,000, and will be prohibited from acting as a director or officer of a public company for two years.
About $11 million of the payments being made to the OSC will go toward the $29.5-million class-action settlement.
The settlements are subject to approval and each settlement is conditional upon the approval of the other.