NEW YORK, May 4, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Home Capital Group Inc. ("Home Capital" or the "Company") (OTCMKTS: HMCBF).
The investigation focuses on whether the Company and its executives violated federal securities laws by making false statements about the activities of some of its mortgage brokers.
Specifically, on February 10, 2017, Home Capital announced that the Ontario Securities Commission ("OSC") had reached the preliminary conclusion that Home Capital failed to meet its continuous disclosure obligations in 2014 and 2015, and that the OSC had served the Company with an enforcement notice related to its 2015 disclosure that information on certain loan applications had been falsified. On April 19, 2017, the OSC alleged that CFO Robert Morton and two former CEOs of Home Capital, Gerald Soloway and Martin Reid, had unlawfully misled shareholders by waiting until after the May 2015 filing of its 2014 annual report and its first-quarter 2015 report to disclose the fraudulent activities performed by 45 of its brokers.
The OSC claims the Company was aware of these activities as early as February 10, 2015 but, instead of reporting the information, lied about the cause of the decline in Company lending, citing other artificial reasons. Most recently, on April 26, 2017, the Company announced that it was seeking a $2 billion line of credit to support the significant decline in deposits at its Home Trust subsidiary.
Since February 10, 2017, the Company has fallen from $22.65 per share on to a closing price of $4.38 on May 4, 2017—a $18.27 or a 80.6% drop—as this information has incrementally hit the market.
If you invested in Home Capital stock or options on U.S. OTC markets and would like to discuss your legal rights, click here: www.faruqilaw.com/HMCBF. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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