Home Capital drops expose cracks in Toronto’s housing market

Supported By:

Net Patrol International Inc.  Data Investigation and Forensic Services
Bankruptcy and Insolvency Trustees

The Ontario government announced on Thursday a set of measures aimed at cooling Toronto’s booming housing market, including a tax on foreign buyers who’ve been blamed for speculation. The province’s securities regulator also accused Home Capital Group, an alternative mortgage lender, of making misleading disclosures, sending its shares tumbling.

The Ontario Securities Commission alleged that Home Capital’s former officials made “materially misleading statements” and failed to comply with other securities rules. “I think a lot of this mortgage fraud in Canada has been covered up and you’re now starting to see tips of various icebergs hitting the boat,” said Marc Cohodes, an investor who’s betting against Home Capital’s stock.

Read more at Business Financial Post

This article is summarized by Canadian Fraud News Inc.