June 2, 2017 / 6:48 PM / 2 years ago

Home Capital regulatory hearing adjourned until June 26

TORONTO (Reuters) - A regulatory hearing to investigate claims Home Capital Group Inc (HCG.TO) and three of its long-time executives had misled investors was adjourned on Friday until June 26.

An initial hearing at the Ontario Securities Commission’s offices in Toronto on May 4 was also adjourned.

Depositors have withdrawn 95 percent of funds from Home Capital’s high interest savings accounts since March 27, when the company terminated the employment of former Chief Executive Martin Reid.

Withdrawals accelerated after April 19, when the OSC accused Home Capital of making misleading statements to investors about its mortgage underwriting business.

The company has said the accusations are without merit.

Initial hearings are being held to determine a date for the merits of the case to be examined. OSC staff will then get to argue their case in front of a panel of OSC commissioners.

If the panel rules that the respondents broke securities law they can be banned from acting as a director or officer of any issuer, while the company itself could face de-registration.

At a hearing on Friday, both sides agreed to an adjournment until June 26 to give lawyers acting for Home Capital and the former Home Capital executives more time to review documents provided by the OSC.

Reporting by Matt Scuffham; Editing by Chizu Nomiyama

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below