FSCO warns of unlicensed mortgage developer

FSCO warns of unlicensed mortgage developer

FSCO warns of unlicensed mortgage developer The Financial Services Commission of Ontario (FSCO) has issued a warning to consumers and industry professionals about an unlicensed mortgage brokerage that is soliciting the public to invest in a condo project in Toronto.

“MetroZen (Canada), a real estate development company that works alongside Zen Mortgage Corp., is not licensed to solicit mortgage business,” an official statement from FSCO reads. “FSCO has been notified that the company is soliciting the public on its website, metrozen.ca, to invest in a large-scale condo project called MetroZen located at Highway 401 and Markham Road.”

FSCO has also warned that the two individuals involved with company – President Ralph Idema and Business Development Manager Cathy Yan – are also unlicensed by the commission.

Zen Mortgage Corp. claims to endeavor to construct socially and economically responsible projects through (unlicensed) syndicate investment.

“We are driven to revitalizing neglected properties within our rapidly-growing cities and seek out hidden jewels in prime locations,” the company’s website states. “With some tender love and care, we re-develop them into imaginative, affordable and environmentally-sound homes that offer an exclusive lifestyle and ultimately upgrade the surrounding community.”
8 Comments
  • Angela Wong-Liao - Invis Inc 2014-10-20 12:24:04 PM
    I am always disturbed and appalled by some of these investment schemes and the only motivation for these schemes is 'Greed'. As a mortgage professional, we have our fiduciary duty to guide and protect ourselves and consumers against any mortgage fraud and investment schemes.
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  • Glenn May-Anderson 2014-10-20 1:57:04 PM
    Once again, kudos to FSCO for weeding out non-licensed activity in the brokerage space. These individuals and companies do nothing but harm us all by refusing to play by the rules, and bring down those of us who are legitimately doing business in the space.

    Angela, by "investment scheme" I believe you are referring to those who would intentionally mislead potential investors for the purposes of fraud, or those who do not perform their fiduciary duties as required when working with a potential investor. I would only add that there are plenty of brokers out there who work with private investors on a regular basis, either individually or as part of syndicates, that do so properly and by-the-book.

    FSCO is helping us all by identifying those who will not do so legally, and warning the Ontario consumer to avoid them.
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  • William Lo (Lend At Lease) 2014-10-20 4:58:46 PM
    I went to one of their presentations and I smelt something was not right.
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