The Financial Services Regulatory Authority of Ontario announced that the Ontario Superior Court of Justice has appointed B. Riley Farber as receiver of all assets, undertakings and properties of Sussman Mortgage Funding Inc. and certain related companies, following FSRA’s application under the Mortgage Brokerages, Lenders and Administrators Act, 2006 and the Court of Justice Act. FSRA sought a receivership in response to allegations of serious wrongdoing and multiple legal proceedings brought by mortgage investors, with the receiver intended to manage SMFI’s affairs in the best interests of investors. B. Riley Farber is required to report to the court before June 2, 2025. SMFI had been licensed by FSRA as a mortgage brokerage and mortgage administrator, but as of March 31, 2025 had no licensed brokers and its brokerage licence was suspended; FSRA has since revoked SMFI’s mortgage brokerage and administrator licences. The receiver will establish a public case website containing filed materials and court orders.
Financial Services Regulatory Authority of Ontario 2025-05-02
Financial Services Regulatory Authority of Ontario obtains court appointment of B. Riley Farber as receiver for Sussman Mortgage Funding Inc
The Financial Services Regulatory Authority of Ontario announced that the Ontario Superior Court of Justice appointed B. Riley Farber as receiver for Sussman Mortgage Funding Inc. and related companies, following FSRA's application. This action responds to allegations of serious wrongdoing by mortgage investors. FSRA has revoked SMFI's mortgage brokerage and administrator licences, and the receiver will manage SMFI's affairs and report to the court by June 2, 2025.