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REFILE-Home Capital founder to step down from board amid regulatory probe
April 24, 2017 / 12:19 PM / in 8 months

REFILE-Home Capital founder to step down from board amid regulatory probe

(Corrects syntax in paragraph 3)

April 24 (Reuters) - Home Capital Group Inc said founder and former CEO Gerald Soloway, who has been accused by regulators of making “materially misleading statements” to investors, will step down from the board once a replacement is found.

The Ontario Securities Commission (OSC) on Wednesday accused Home Capital, Canada’s biggest non-bank mortgage lender, of making “materially misleading statements” to investors.

The regulator issued allegations against the company’s former chief executives, Soloway and Martin Reid, and current Chief Financial Officer Robert Morton and set a hearing on the matter for May 4.

Home Capital Group also said on Monday that Morton “will assume responsibilities for special projects outside the financial reporting group” after the company files its first-quarter results.

Robert Blowes, a former CFO, will assume the role on an interim basis.

Home Capital Group said on Friday it would defend itself against allegations by regulators that it withheld information about fraud by mortgage brokers. (Reporting by Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila)

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