The Globe and Mail reports in its Thursday, April 20, edition that Home Capital Group and
three of its current or former
executives are being accused of
making false and misleading
statements to the public.
The Globe's Christina Pellegrini writes that the Ontario Securities Commission
alleges disclosures
Home Capital made in 2015
breached Ontario securities
laws, have caused "significant
investor harm" and eventually
led to a nearly 19-per-cent drop
in Home Capital's stock price
once the information was
released in July, 2015, wiping
out $600-million in market value the following
day. In a statement Wednesday,
Home Capital said that it has
carefully considered its disclosure
obligations. Home Capital said, "The allegations will
be vigorously defended."
The OSC's allegations have not
yet been proven. In a statement of allegations,
the OSC said former Home
Capital boss Gerald
Soloway, as well as its then-president
Martin Reid, did not properly
disclose material information
they had learned after a six-month
internal investigation,
dubbed "Project Trillium," which
found that certain mortgage brokers
in its network were submitting
fraudulent
employment-income documentation.
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