Networks to crack down on brokers' side businesses?

Networks to crack down on brokers' side businesses?

Networks to crack down on brokers The case of a recently deceased mortgage broker who is accused of committing fraud may trigger a shift among broker networks when it comes to allowing its brokers to operate independent MICs.

Tammy Robinson, a former Ontario mortgage broker with Dominion lending Centres, is accused of mismanaging mortgage investments attained independently and not through her broker network. Still, network head Gary Mauris was questioned by the media regarding the affiliation by local news outlet Northumberland News.

“None of these transactions were done on Dominion Lending Centre documentation and none of the funds were made payable to Dominion Lending Centres Canada,” Gary Mauris of Dominion Lending Centres told Northumberlandnews.com. “These were unsecured investments of a personal nature that the clients chose to partake in directly with Ms. Robinson.”

Brokers came to the defense of Canada’s largest network, realizing it is a case of a broker acting completely independently.

“It would not matter if this case was about someone associated with DLC or Verico or TMAC or Centum or any other firm,” Ron Butler of Verico Butler Mortgage said in the comments section of MortgageBrokerNews.ca. “These stories (and there is a variation on the same theme every quarter somewhere in Canada) represent individuals who may make wrong decisions and bad mistakes that have nothing to do with their networks.”

However, one of the men allegedly defrauded by Robinson doesn’t see it that way, which may lead to broker networks more tightly policing its brokers’ side businesses.

“She never disclosed it ran as a franchise or what she was doing was on the side,” Michael McArthur told Northumberlandnews.com. “I just assumed. And others did as well.”

Related:

Mortgage investors blame broker for $200K loss
10 Comments
  • Len Lane 2014-04-28 10:41:14 AM
    Well you know what they say about the word assume.. would not these investors have been considered sophisticated investors in that they have financial knowledge and the means to invest. Sounds more like bad decisions by everyone involved.
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  • Toronto Broker 2014-04-28 11:24:45 AM
    I completely disagree with Ron Butler. Companies like DLC (Franchisor) and VERICO (Volume Bonus Network) are not brokerages.

    You live by your sword, you will die with your sword. Most of these big brokerages, would hire anyone without doing much due diligence on them.

    Companies such as Mortgage Intelligence, Invis, Mortgage Architects that provide full compliance, payroll and other regulatory support would have caught most of these acts.
    Post a reply
  • A Broker 2014-04-28 11:37:06 AM
    The agent was working under the name of Dominion. The broker is responsible for her actions. The client is correct.
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