The Financial Services Commission of Ontario (FSCO) lacks the expertise and knowledge needed to regulate syndicated mortgages, according the the province’s former registrar under the Mortgage Brokers Act.
“They don’t understand any of this,” said Bill Vasiliou, “they don’t even understand their legislation.” Vasiliou, a former mortgage regulator, now works as a certified fraud examiner.
Syndicated mortgages are legal investments, where multiple investors lend money to a borrower for a mortgage on a property. Vasiliou examined the syndicated mortgage contracts and ledgers for Black Bear investments, in which 120 investors likely lost $9 million tied to a convicted fraudster, and called the contracts “open fraud”.
Read more at CBC News