Home Capital Under Fire, CFO Scampers Away

(RTTNews) - Home Capital Group Inc. has announced several changes in management and board after the Ontario Securities Commission alleged that the company executives misled investors and broke securities laws.

The Toronto-based company's current Chief Financial Officer Robert Morton will be assigned new responsibilities after first-quarter results are filed next month. Robert Blowes will assume the role of interim Chief Financial Officer.

Gerald Soloway, the founder of the company, will step down from the board when a replacement with recognized expertise in financial services is found. Soloway will run for re-election at the May 11 shareholders meeting.

The Bank of Nova Scotia has advised Home Capital it will resume sales of Home Trust deposit products Monday, subject to a $100,000 per-client cap.

"These are important steps in rebuilding confidence and putting the focus back on our profitable underlying business and its solid performance," said Kevin Smith, chair of the board of Home Capital. "We know that we have not met the full expectations of some of our valued stakeholders, which we deeply regret. These changes will ultimately result in enhanced management and governance leadership, and bring valuable new perspectives to Home Capital."