Jailed broker ordered to repay victims $600K

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A disgraced New Brunswick mortgage broker has now been ordered to repay his victims $600,000 and banned from the investment industry for life, an encouraging sign for tougher regulations in the mortgage industry, said the president of the East Coast brokers’ association.
 
“Though is it unfortunate such events took place, we believe it will help to expedite the regulatory process not only for New Brunswick but for all Canadian provinces that lack this,” said Janet McKeough, president of the Mortgage Brokers Association of Atlantic Canada. “Higher standards and increased consumer protection is necessary and positive for our industry.”
 
Locked up for the past 10 months, William Watson Priest – a mortgage broker in Nackawic – was sentenced to three years in September of 2012 after pleading guilty to nine counts of fraud.
 
McKeough told MortgageBrokerNews.ca that the current development of regulations in neighbouring Nova Scotia in cooperation with the MBAAC will hopefully be repeated in New Brunswick.
 
“MBAAC has a zero tolerance for fraud,” she said. “We are committed to elevating the education and professionalism of our industry and ensuring consumers are protected “As we are doing in Nova Scotia, we look forward to working with the Province of New Brunswick on the development and implementation of mortgage brokerage regulations.”
 
Beginning in 2008, Priest obtained a total of $858,782 from 11 investors, all residents of New Brunswick, the provincial regulator said.
 
In the ruling, Rick Hancox, the chief executive offer of the commission, stated that “The Tribunal considered the evidence presented by staff as well as compelling written statements provided by the defrauded investors. It was important that those who were defrauded had an opportunity to express the impact and effects that this crime had on them, their family and friends.”
 
The money was obtained with a promise of high rates of return; however, Priest never invested any of the funds. Rather, he deposited the funds collected into his personal account and then used the money to either pay other investors or kept it for his personal use. 
 
The investors suffered an aggregate financial loss of $594,997 – money Priest is now on the hook for.
 
  • Mohamed Manzoor on 2013-07-25 8:28:25 AM

    Although this is a terrible news for the brokers in the industry as it removes the consumers confidence in Brokers. A few bad apples can really hurt the industry.
    This is the biggest reason most consumers are at the banks and ok with 1.5% GIC returns.

  • www.bestrateplus.com on 2013-07-25 8:37:21 AM

    and that is why consumers need to check out the best rates at the same time they check out the reputation of the broker.... a simple phone call to FSCO could save the consumer a lot of money and stress! www.bestrateplus.com

  • Ron Butler on 2013-07-25 10:51:37 AM

    @bestratesplus.com: seriously Oliver, this is not a forum to promote an individual webpage. The commentary also makes little sense, FSCO is in Ontario not the Maritimes and a phone call to a regulator would not have helped at all, this person's registration would have been in good standing until the day it was not.

    This man was involved in a Ponzi scheme and they are very hard to catch until they unravel. Ask all of Bernie Madoff's clients.

  • www.bestrateplus.com on 2013-07-25 11:08:05 AM

    Feel free to call FSCO or your local equivalent/similar 'policing' agency/agencies. And,of course, if you are not satisfied, do more 'due diligence' til u are !! Or better yet, simply call a professional broker to 'guide' you realistically, and also offer the best rates ! (a natural win-win option!

  • Ottawa Broker on 2013-07-25 11:39:26 AM

    @BestRatesPlus,
    What a joke, your business is that slow that you have to resort to making a plug for business on this forum?
    Totally hilarious.

  • ON Broker on 2013-07-25 11:42:26 AM

    hey Bestrateplus, just went to your site, your rates aren't even the best out there, and that is without buying them down. I guess this is the best advertising you can afford, making statements on open forums. maybe I should plug my website, I have better rates than you do.

  • BC Broker on 2013-07-25 12:52:32 PM

    Leave him alone folks, your negative comments and attacks are only going to drive people to visit his site. They also don't paint a very nice picture of our industry to the many consumers that read this forum.

  • Ron Butler on 2013-07-25 1:18:38 PM

    @ BC Broker, what is not nice is using a news forum for the mortgage industry to promote your own website. It is necessary in my opinion to discourage people from shamelessly plugging the name of their website and offering the chance for great rates and brilliant professionalism. This is a news site not an advertising site.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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