Regulator adjourns proceedings until June 26

The Ontario Securities Commission’s proceedings against alternative mortgage lender Home Capital Group Inc. and three former executives have been adjourned until June 26.

The securities watchdog has accused the company, along with former chief executive Gerald Soloway, former chief executive Martin Reid and former chief financial officer Robert Morton, of misleading disclosure in connection with the discovery of falsified information in Home Capital’s broker channel.

Jennifer Lynch, a litigator for staff of the securities regulator, told OSC Commissioner Janet Leiper during a short, largely administrative hearing on Friday that her team had delivered a draft agreed statement of facts earlier in the day to lawyers for the company and individual respondents named in the allegations. OSC litigators also gave the respondents’ lawyers other materials including a preliminary witness list, will-say statements and an expert report late last month, she said.

“Staff intends to continue to work with respondents on both the joint hearing brief and the draft agreed statement of facts, and any other proposal that either they or we may have with respect to getting to an earlier hearing,” Lynch told Leiper.

Before the next hearing on June 26, lawyers for the respondents named in the allegations are due to give their witness lists, will-say statements for each, and advise if and when they expect to deliver their corresponding expert report.

The securities regulator has accused Home Capital and its former executives of misleading shareholders. Home Capital has said the allegations are without merit, and has vowed to defend its approach to disclosure.