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An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person’s or entity’s licence on the Licensing Link section of FSRA’s website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.
Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 18,19 and 21;

AND IN THE MATTER OF My Mortgage Auction Corp. and Gregory Joseph Martel.


INTERIM ORDER SUSPENDING LICENCES

TO:                
My Mortgage Auction Corp.
33 Bloor Street, 5th Floor, Suite E,
Toronto, ON M4W 3H1

Gregory Joseph Martel
Principal Broker

AND TO: Gregory Joseph Martel

Section 19(1) of the Act provides that the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”) may, by order, revoke a licence in certain specified circumstances. Section 18(1) of the Act provides that the Chief Executive Officer may, by order, suspend a licence in certain specified circumstances.

Section 21 of the Act provides that if the Chief Executive Officer proposes to revoke or suspend a licence without the licensee’s consent, the Chief Executive Officer shall give written notice of the proposal to the licensee, including the reasons for the proposal.

Section 19(3) of the Act provides that, if in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the revocation of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence.

Section 18(3) of the Act provides that, if in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the suspension of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence.

IT IS ORDERED THAT pursuant to sections 18(3) and 19(3) of the Act, the mortgage brokerage licence issued to My Mortgage Auction Corp. (licence number 13040) and the mortgage broker licence issued to Gregory Joseph Martel (licence number M14001465) are suspended for the reasons outlined below. During the suspension, My Mortgage Auction Corp. and Gregory Joseph Martel are not authorized to deal in, trade in, or administer mortgages in Ontario.

TAKE NOTICE THAT this Interim Order takes effect immediately and will remain in effect until the expiry of the period for requesting a hearing in respect of a Notice of Proposal to Revoke Licence and to Suspend Licence (15 days after the Notice is given, or deemed to have been delivered).

AND TAKE NOTICE THAT pursuant to subsections 48(4) and 49(1) and (2) of the Act, every person who fails to comply with an order made under the Act is guilty of an offence and every individual convicted of an offence under the Act is liable to a fine of not more than $500,000 or imprisonment for a term of not more than a year or both a fine and imprisonment. Every corporation convicted of an offence under the Act is liable to a fine of not more than $1,000,000.

Pursuant to subsection 48(5) of the Act, if a corporation commits an offence under the Act, every director or officer of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence, or who failed to take reasonable care to prevent the corporation from committing the offence, is guilty of an offence, whether or not the corporation is prosecuted or convicted.

Subsection 48(6) provides that every partner of a partnership and every individual who is a member of the directing body of an entity, other than a person or partnership, who directed, authorized, assented to, acquiesced in or participated in the commission of an act or omission by the partnership or entity which, if committed by a person, would be an offence under the Act, is guilty of an offence.

REASONS FOR ORDER

  1. My Mortgage Auction Corp. (“MMAC”) is licensed as a mortgage brokerage (licence # 13040) under the Act. MMAC is incorporated in British Columbia.

  2. Gregory Joseph Martel (“Martel”) is licensed as a mortgage broker (licence # M14001465) under the Act and is the principal broker of MMAC. Martel is also the sole director and shareholder of MMAC.

  3. The specific facts supporting this order are set out in the Notice of Proposal to Revoke Licence and to Suspend Licence.

  4. Due to the financial position of MMAC, the contraventions of requirements under the Act, information regarding Martel’s past conduct, and the provision of false or deceptive information to the Financial Services Regulatory Authority of Ontario (“FSRA”), there are reasonable grounds to believe that MMAC and Martel are no longer suitable to be licensed under the Act.

  5. Subsections 18(3) and 19(3) of the Act provide that if, in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the revocation or suspension of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence.

  6. The Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer, is of the opinion that the interests of the public may be adversely affected by any delay in making an order to revoke the licence held by MMAC and an order to suspend the licence held by Martel.

  7. Specifically, the information in the reports of the Receiver and the decision of the British Columbia Financial Services Authority suggest that Martel and MMAC have been engaged in very serious misconduct. If Martel and MMAC continue to be licensed pending the steps required by section 21 of the Act, including a hearing, the public may believe that they are suitable for licensing and legitimate participants in the Ontario mortgage brokering sector. This places the public at risk, particularly if Martel or MMAC attempt to solicit Ontario consumers.

  8. Further, the continued licensing of Martel and MMAC cause risk to public confidence in the regulated mortgage brokering sector in Ontario and to the reputations of the licensed participants in those sectors. An interim suspension order is required to ensure public confidence in the regulatory scheme and sector.

  9. Given the serious nature of the conduct in this case and the financial position of MMAC, there is a significant risk of public harm if MMAC and Martel continue to be licensed to deal and trade in mortgages. Accordingly, the criteria for issuance of an interim suspension are satisfied.

DATED at Toronto, Ontario, June 15, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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