A St. John's, Newfoundland mortgage broker is going to jail.
This week a St. John's mortgage broker who owned the firm Newfoundland Mortgage Brokers has been found guilty of running a ponzi scheme and defrauding investors of over $500,000. Mr. Stirling Norman will be sentenced on June 24, but according to the Judge, is headed to jail before the sentencing hearing. Both the crown and the defence have recommended a 2 year term in a federal prison.
It is sad to see people with such potential lacking the principals to make a solid career for themselves and their family. According to reports, Sterling had been promising investors a return of 48% taking advantage of his clients trust and desire for gains.
It is well worth noting that many ponzi schemes are easily developed by appealing to investor greed and by offering an unreasonable rates of return. If someone promises unusually more than seems reasonable, one should be very careful about investing money with that individual. It's been said many times, if it sounds too good to be true, it probably is.
It is worth stating that this type of behaviour is not at all typical of the mortgage industry in St. John's. I know many of the mortgage brokers and have worked with several of them over the last 22 years. Most of them would be appalled by the actions of Mr. Norman and would prefer he be barred from working again as a mortgage broker.
I have known Mr. Norman as well and in the past I have noticed his management of some cases made me uncomfortable. I gave up dealing with him many years ago and unfortunately this confirms that my discomfort was well founded.
The lesson for all professionals is to be meticulous about representing your clients interest by adhearing to the golden rule. "Do unto others as you would have them do unto you." You might have heard that before but today it bears repeating.
To read more details, check out the CBC report.
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