Home Capital regulatory hearing adjourned to June 26

TORONTO (Reuters): A regulatory hearing into claims that Home Capital Group Inc and three of its longtime executives misled investors was adjourned on Friday to June 26. A preliminary hearing at the Ontario Securities Commission’s Toronto office on May 4 was also adjourned. Depositors have withdrawn 95 per cent of funds from Home Capital’s high-interest savings accounts since March 27, when the company terminated the employment of former chief executive Martin Reid. The payouts accelerated after April 19, when the OSC accused Home Capital of making misleading statements to investors about its mortgage underwriting business. The company said the accusations were baseless. Preliminary hearings are underway to determine the date for the substantive consideration of the case. OSC staff will then be able to present their case to a panel of OSC commissioners. If the panel finds that respondents have broken securities laws, they could be barred from serving as directors or officers of any issuer, and the company itself could face deregistration. At Friday’s hearing, both sides agreed to adjourn the hearing until June 26 to give lawyers acting for Home Capital and former Home Capital board members more time to review the documents provided by the OSC. (Reporting by Matt Scuffham; Editing by Chizu Nomiyama)