Ontario’s Superintendent of Financial Services (Acting) has issued an interim cease and desist order against David Braganza, who operates an investment business in the Toronto area. The order is effective immediately.
The regulator says that Braganza has been receiving funds from individuals on the understanding that he will reinvest the money and repay them on a specified date and at a high rate of interest. These investment transactions are known as “deposits” under the Loan and Trust Corporations Act.
Some depositors have complained that Braganza has not returned their funds.
The regulator says Braganza is not registered to conduct business as a loan and trust corporation in Ontario, and that the Financial Services Commission of Ontario is conducting a further investigation into the allegations.
Braganza is believed to operate his business under the names “Financial Link”, “Financial Traders” and “Capital Traders Plus.”
The order reads:
- Braganza shall cease conducting, undertaking or transacting in Ontario the business of a loan or trust corporation by receiving deposits and lending or investing such money;
- Braganza shall deliver up to a representative of the Superintendent copies of all business records including but not limited to, lists of the names of all investors, the amounts received from each investor, the bank accounts where all the deposits are invested, and all such other records and documents as are requested; and
- Braganza or any person or corporation acting on behalf of or as agent of Braganza or as an agent of “Financial Link”, shall take all action, or cause all such action to be taken, to preserve all existing funds, deposits, securities or assets and to regain control of any funds, deposits, securities or assets from any person, and to hold all such funds, deposits, securities or assets in trust for the Superintendent pending further order of the Superintendent, the Financial Services Tribunal, or the Superior Court of Justice.
The interim order will become permanent unless the Acting Superintendent receives a request for a hearing before the Financial Services Tribunal within 15 days.