Home Capital founder to step down from board amid regulatory probe

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Home Capital Group said founder and former CEO Gerald Soloway will step down days after regulators accused the holding company of making “materially misleading statements” to investors.

The Ontario Securities Commission issued allegations against Soloway and another former Chief Executive Martin Reid and current Chief Financial Officer Robert Morton.

Home Capital is one of Canada’s biggest non-bank mortgage lenders. The company said it would defend itself against allegations by regulators that it withheld information about fraud by mortgage lenders on Friday.

Home Capital’s shares had fallen 20.7 per cent on Thursday, but gained 8.7 per cent on Friday.

Read more at Reuters

This article is summarized by Canadian Fraud News Inc.