Following legal claim matters identified with allegations of misleading disclosure, Home Capital Group says it has achieved a consent to pay $29.5 million to settle Ontario Securities Commission.
To settle with the Ontario Securities Commission, the embattled mortgage lender will pay $10 million and repay the provincial securities watchdog a cost of $500,000.
Home Capital founder Gerald Soloway will pay an administrative punishment of $1 million and will be banned from acting as an executive or officer of a public company for a long time, a time that would last for about 4 years.
Previous CFO Robert Morton and previous CEO Martin Reid will each compensate an administrative punishment of $500,000, and will be precluded from acting as a chief executive or officer of a public company for a long time, probably two years.
About $11 million of the installments being made to the Ontario Security Commission will go toward the $29.5-million, class action settlement. The claim, which is identified with the charges of misleading disclosure, was filed with the Ontario Superior Court of Justice in February and still can’t seem to be certified.
The settlements are liable to endorsement and every settlement is restrictive upon the endorsement of the other.