A Quispamsis man is facing allegations of unlicensed real estate, mortgage brokering and investment activity by the Financial and Consumer Services Commission.
FCNB is seeking cease and desist orders as well as financial penalties against John Albert McKellar and 668054 N.B. Ltd.
McKellar is accused of coordinating the sale of two Saint John homes and charging two homeowners $3,000 for his services without a licence.
It is also alleged that he solicited thousands of dollars from a senior on a fixed income to invest in a business.
The commission said it began an investigation after a complaint involving McKellar’s activities in a 2016 real estate transaction.
In a statement of allegations filed with the Financial and Consumer Services Tribunal, FCNB said McKellar, who once held a real estate licence, was approached by a woman to help sell her home to an acquaintance and whose conditional sale was delayed because the acquaintance’s home needed renovations.
“McKellar assisted the acquaintance to take out a second mortgage on her home to help pay for the renovations he would be overseeing, and he helped to negotiate the terms of a loan between the two women without being licensed to do so under the Mortgage Brokers Act,” the FCNB said.
McKellar found a buyer for the acquaintance’s home and helped the buyer secure financing by sending falsified documents to a licensed mortgage broker, said the commission.
He then charged each of the two homeowners a $3,000 broker’s fee for his involvement in finalizing the sale of both properties and helping to arrange mortgages, despite not holding a real estate or mortgage broker’s licence.
In 2016, FCNB said McKellar solicited a senior to provide him nearly $31,000 in loans to support a house flipping business. He then issued the senior a promissory note on behalf of himself and the numbered company as well as an investment agreement in the numbered company.
“The various loan agreements, the promissory note and the investment agreement were not issued in compliance with New Brunswick’s Securities Act,” said the commission.
In addition to the cease and desist orders, FCNB also requests the Tribunal order McKellar and 668054 N.B. Ltd. return all money he and the company received through the unlicensed activity.
None of the allegations have been proven against McKellar, who will have the opportunity to file a statement of defence.
The Tribunal will schedule a hearing at a later date to adjudicate the issues.
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