fraud

Condo manager faces fraud charges

Case emphasizes how CMRAO attends to complaints against licensees 
Monday, September 27, 2021

A condominium manager in the Kitchener-Waterloo area is facing fraud charges in connection with alleged financial losses over $500,000, of which several condo corporations suffered from. The case emphasizes how seriously the Condominium Management Regulatory Authority of Ontario (CMRAO) deals with complaints against its licensees and the action that follows.

The CMRAO reported in a recent news release that it became aware of these charges earlier this year. The individual has since been identified as Gavin Kendrick, a former licensed condo manager with Millcreek Management Inc. He was arrested by the Waterloo Regional Police Service and now faces fifive counts of fraud over $5,000 and five counts of theft over $5,000.

An investigation began In March 2020 when the registrar of the CMRAO received many complaints about Millcreek Management Inc. and subsequently rolled out interim measures: to suspend the manager’s transitional general licence and apply certain conditions to the Millcreek Management Inc.’s condominium provider licence. The accused cancelled his license while the inspection was ongoing and is no longer licensed to provide condominium management services.

After receiving new complaints about the manager and management company, the CMRAO proposed other conditions on Millcreek Management’s licence, on April 22, 2021, specifically:

  • Millcreek shall not allow Kendrick to be an interested person or an associated person (as defined in sections 1(2) and 37(2) of the CMSA) in respect of Millcreek’s business as a condominium management provider. In particular, Millcreek shall not allow Kendrick to be an officer or director of Millcreek, have a beneficial interest in Millcreek’s activities, exercise control either directly or indirectly over Millcreek, and provide financing either directly or indirectly to Millcreek’s activities.
  • Within one year of the date that this condition takes effect, Millcreek is required to comply with an inspection with an inspector appointed by the registrar. In particular, the inspector shall inspect: a random sample of monthly financial statements prepared by Millcreek and provided to Millcreek’s clients; the signing authority arrangements for a random sample of Millcreek’s clients; and Millcreek’s written procedures for handling the transfer of client documents upon termination.

Millcreek Management has appealed the registrar’s proposal to apply these conditions, an ongoing matter that is currently being adjudicated before the Licence Appeal Tribunal.

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