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

AND IN THE MATTER OF Gregory Joseph Martel.

NOTICE OF PROPOSAL TO REVOKE LICENCE

TAKE NOTICE THAT pursuant to sections 19 and 21 of the Act, and by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) is proposing to revoke the mortgage broker licence issued to Gregory Joseph Martel.

Details of these contraventions and reasons for this proposal are described below. This Notice of Proposal includes allegations that may be considered at a hearing.

SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à: contactcentre@fsrao.ca.

YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SECTIONS 21(2) AND 21(3) OF THE ACT. A hearing by the Tribunal about this Notice of Proposal may be requested by completing the enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you. The Request for Hearing Form (Form 1) must be mailed, delivered, faxed or emailed to:

Address:  
Financial Services Tribunal
25 Sheppard Avenue West, 7^th Floor Toronto, Ontario
M2N 6S6

Attention: Registrar

Fax: 416-226-7750

Email: contact@fstontario.ca

TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you, orders will be issued as described in this Notice of Proposal.

For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal’s website at www.fstontario.ca

The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal (“Rules”) made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended. The Rules are available at the website of the Tribunal: www.fstontario.ca. Alternatively, a copy can be obtained by telephoning the Registrar of the Tribunal at 416-590-7294, or toll free at 1-800-668-0128 extension 7294.

At a hearing, your character, conduct and/or competence may be in issue. You may be furnished with further and or other particulars, including further or other grounds, to support this proposal.

REASONS FOR PROPOSAL

I. INTRODUCTION

1. The Director proposes to revoke the mortgage broker licence issued to Gregory Joseph Martel (“Martel”).



II. BACKGROUND

A. The Licensee

2. Martel is licensed as a mortgage broker (licence # M14001465) under the Act.


3. Martel was the principal broker of My Mortgage Auction Corp (“MMAC”). Martel is also the sole director and shareholder of MMAC.


4. On June 15, 2023, the Director issued a Notice of Proposal to revoke the mortgage brokerage licence issued to MMAC and suspend the mortgage broker licence issued to Martel (the “First NOP”).


5. In the First NOP, the Director noted that Martel had contravened the Act by providing false information to the Financial Services Regulatory Authority of Ontario (“FSRA”), contrary to subsection 45(2) of the Act, and by failing to take reasonable steps to ensure MMAC’s compliance with all requirements under the Act, contrary to section 2 of Ontario Regulation 410/07.


6. In the First NOP, the Director also noted that MMAC and Martel were unsuitable to be licensed.


7. No Request for Hearing has been filed with the Financial Services Tribunal regarding the First NOP.


8. By Order, dated July 10, 2023, the MMAC mortgage brokerage licence was revoked. As a result, Martel’s mortgage broker licence is suspended by operation of section 17(3)(b) of the Act.



B. The Receivership, the Bankruptcies, and the Contempt of Court

9. By Order, dated May 4, 2023, the British Columbia Supreme Court appointed PricewaterhouseCoopers Inc. (“PwC”) as receiver over MMAC.


10. On June 6, 2023, PwC assigned MMAC into bankruptcy.


11. On August 31, 2023, Martel was personally assigned into bankruptcy by court order.


12. PwC reported to the British Columbia Supreme Court that Martel has repeatedly failed to comply with the court orders made in the receivership proceeding.


13. On September 11, 2023, the British Columbia Supreme Court found Martel guilty of contempt of court.



III. GROUNDS FOR REVOCATION OF LICENCE

14. Subsection 19(1) of the Act states that the Chief Executive Officer may, by order, revoke a licence in any of the circumstances in which he or she is authorized to suspend a licence.


15. According to subsection 18(1) of the Act, such circumstances are:
    
    
    1. if the licensee ceases to satisfy the prescribed requirements for issuance or renewal, as the case may be, of the licence;
    
    
    2. if the Chief Executive Officer believes, on reasonable grounds, that the licensee is no longer suitable to be licensed having regard to the circumstances, if any, prescribed for the purposes of subsection 14(1) or 16(4), as the case may be, and such other matters as the Chief Executive Officer considers appropriate;
    
    
    3. if the licensee contravenes or fails to comply with a requirement established under this Act; or
    
    
    4. if such other circumstances as may be prescribed.
    
    


16. Under section 10 of Ontario Regulation 409/07, the Chief Executive Officer must consider the following when determining that a mortgage broker is not suitable to be licensed:
    
    
    1. Whether the individual’s past conduct affords reasonable grounds for belief that he or she will not deal or trade in mortgages in accordance with the law and with integrity and honesty.
    
    
    2. Whether the individual is carrying on activities that contravene or will contravene the Act or the regulations if he or she is licensed.
    
    
    3. Whether the individual has made a false statement or has provided false information to the Chief Executive Officer with respect to the application for the licence.
    
    


17. Martel’s contempt of court, bankruptcy, and the circumstances set out in the First NOP, afford reasonable grounds for belief that he will not deal or trade in mortgages in accordance with the law and with integrity and honesty.


18. As set out in the First NOP, Martel has contravened the Act, Martel has provided false information to FSRA, and Martel’s past conduct affords reasonable grounds for belief that he will not deal or trade in mortgages in accordance with the law and with integrity and honesty.


19. Having regard to the circumstances, the Director believes, on reasonable grounds, that Martel is no longer suitable to be licensed.


20. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, October 11, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.