BCFSA takes action against Menethil Properties after managing broker’s suspension

Menethil Properties Ltd., and its director, Yu “David” Song, are once again facing scrutiny. The British Columbia Financial Services Authority (BCFSA) has issued an order for the Kelowna, B.C.-based rental property brokerage to cease operations following the suspension of its managing broker, Tao “Terry” Guo.

The latest development, announced on Feb. 13, disclosed that Guo abandoned his role as managing broker by moving overseas and transferring his responsibilities to Song. This transfer of responsibilities to Song, whose own managing broker license was revoked less than two years ago, was deemed a violation of RESA.

A history of controversy

In September 2023, Song had his managing broker license cancelled by BCFSA for professional misconduct. The violations included failure to submit financial statements, maintain proper financial records, and respond to BCFSA’s requests for information. Song admitted to the allegations, resulting in a $25,000 fine and $14,537 in enforcement costs. His license was also revoked.

Despite losing his managing broker license, Song was allowed to continue as a representative broker under strict conditions, including completing a broker’s licensing course before reapplying for a managing broker license.

Current developments

Guo’s alleged failure to oversee the brokerage was uncovered during an investigation into Menethil’s financial practices, according to BCFSA. With Guo’s license suspended, Menethil Properties is without a managing broker, making the brokerage unauthorized to operate.

BCFSA’s senior vice president, Jon Vandall, stated that the evidence of Guo’s lack of control over the brokerage necessitated urgent action to protect the public.

Impact on tenants and landlords

Menethil Properties oversees around 100 rental properties in Kelowna. BCFSA assures that existing tenancy agreements remain valid under the Residential Tenancy Act and advises tenants to continue paying rent as agreed. Landlords and tenants can access more information through BCFSA’s consumer alerts.

The future of Menethil Properties depends on appointing a new licensed managing broker to supervise operations and addressing the regulatory concerns raised by BCFSA.