In response to concerning allegations about a licensed condominium manager’s involvement in handling a condominium corporation’s money, the CMRAO conducted an inspection.

Manda Cabraja is a Limited Licence holder and was an employee of New City Property Management Inc. (“New City”). It is alleged that Ms. Cabraja improperly expended funds from both the operating and reserve funds of a condominium corporation, by causing cheques to be issued by the corporation to various companies. Not all cheques were issued for legitimate services rendered to the corporation by the companies.

It is also alleged that Ms. Cabraja failed to disclose a material interest in at least one company that received payments from the corporation. During the time New City managed the corporation, the company received payments from the corporation totalling approximately $419,916, not all of which were for legitimate services rendered.

After reviewing the results of the inspection, the Registrar has issued a notice of proposal to revoke Ms. Cabraja’s Limited Licence and has ordered the immediate suspension of her licence. The Registrar previously refused to renew the Condominium Management Provider Licence of New City for failing to meet the prescribed requirements of the licence.

Under the Condominium Management Services Act, 2015 (“CMSA”), Ms. Cabraja and New City are prohibited from providing condominium management services, holding themselves out as a condominium manager or condominium management provider, or performing any of the functions of a condominium manager or condominium management provider. It is an offence to contravene the CMSA. If convicted of an offence, an individual is liable for a fine of not more than $50,000 or imprisonment for a term of not more than two years less a day or both, and a corporation is liable for a fine of not more than $250,000.

What is a notice of proposal to revoke or suspend?

The CMSA allows the Registrar to propose to suspend or revoke a licence. When a notice of proposal is issued, the licensee has 15 days to request a hearing at the Licence Appeal Tribunal (LAT) to appeal the proposal. If the licensee does not appeal the proposal, then the suspension or revocation takes effect.

If the licensee appeals the proposal, then their licence remains active until the LAT issues a decision. The LAT may uphold the Registrar’s proposal or substitute its opinion for that of the Registrar. The LAT may also attach conditions to its order or to a licence.

What is an immediate suspension order?

If the Registrar proposes to suspend or revoke a licence and they consider it in the public interest to do so, the Registrar may, by order, temporarily suspend the licence and this order takes immediate effect. An immediate suspension is always accompanied by a proposal to suspend or revoke the licence. If the licensee requests a hearing to appeal the proposed action, then the immediate suspension order expires 15 days after the LAT receives the written request for a hearing, but if the hearing is commenced within the 15-day period, the LAT may extend the time of expiration until the hearing is concluded.