Inspection Leads to Additional Actions and LAT Decision for Provider Business
On February 14, 2022, the Licence Appeal Tribunal (LAT) issued a decision directing the Registrar to apply conditions to the licence of Millcreek Management.
Between 2019 and 2020, the CMRAO received multiple complaints from numerous condominium corporations against Millcreek Management Inc. and Mr. Gavin Kendrick. The complaints raised serious concerns about Mr. Kendrick’s handling of the finances of Millcreek Management’s clients, including contracts between condominium corporations and other businesses owned by Mr. Kendrick. The Registrar of the CMRAO became concerned about the alleged financial mismanagement and initiated an inspection relating to the complaints.
In March 2020, while the inspection was ongoing, the Registrar took several interim regulatory actions, including proposing to suspend Mr. Kendrick’s licence to provide condominium management services. In June 2020, Mr. Kendrick cancelled his licence. Mr. Kendrick remains unlicensed and cannot provide condominium management services in Ontario.
After the initial actions proposed in March 2020, the CMRAO received new complaints against Mr. Kendrick and Millcreek Management and continued its inspection. Once the inspection was concluded and the findings were reviewed, the Registrar proposed to apply two new conditions on Millcreek Management’s provider licence on April 22, 2021, specifically that:
- Millcreek shall not allow Gavin 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 Gavin 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
- 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
- Millcreek’s written procedures for handling the transfer of client documents upon termination
Millcreek appealed the decision and requested a hearing before the Licence Appeal Tribunal (LAT).
The LAT hearing was held on December 13, 2021, and on February 14, 2022, LAT issued its decision directing the Registrar to carry out the proposed actions dated April 22, 2021, to apply conditions to the licence of Millcreek Management. Accordingly, the proposed conditions have been applied to the licence of Millcreek Management.
On March 22, 2022, Millcreek Management notified the CMRAO that Mr. Kendrick is no longer an interested person or an associated person of Millcreek Management’s business.
The CMRAO treats complaints seriously and takes appropriate action in the interest of consumer protection. Complaints received by the CMRAO could lead to disciplinary hearings in accordance with O. Reg 3/18 of the CMSA. The CMRAO’s Discipline Committee is composed of members from Ontario’s condominium sector and the public who are appointed by the Board of Directors of the CMRAO. Members serve on the committee to determine when a licensee has failed to comply with the CMRAO’s Code of Ethics.
In the interest of consumer protection, regulatory decisions are publicly available in the Consumer Protection section of the CMRAO website. Information about licensees and the status of each licence (including conditions and actions on a licence) is available in the Public Registry.