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Home Capital to pay $11 million over mortgage fraud

Ontario’s securities watchdog approved a settlement on Wednesday with Home Capital Group Inc. and three former executives who failed to tell investors quickly and completely about fraudulent activity by some mortgage brokers associated with the alternative lender.

As a result of the settlement, about $11 million could flow through the Ontario Securities Commission (OSC) to shareholders covered by a related class action suit that’s awaiting court approval.

The agreement is conditional on the Ontario Superior Court accepting a settlement worth about $29.5 million including the money available through the OSC process.

Read more at Huffington Post

This article is summarized by Canadian Fraud News Inc.